Public debates Table of Content

Name of the questioneer Page 1 Duminicioiu Ramona 1 2 Memet Denis 3 3 Cornea Eugen 6 4 Gruber Gheorghe 10 5 Chifan Andreea 18 6 Bâlici Ştefan 21 7 Husti Răduleţ Laura 24 8 Zmeskal Zita 25 9 Kappel Iudit 30 10 Dóci Gabriella 31 11 Gomboş Vasile Raul 34 12 Andreica Dionisie 37 13 Caproş Călin 40 14 David Eugen 43 15 Cosma Gheorghe 46 16 Furdui Dorin 49 17 Pencea Roxana 50 18 Brădaţan Tudor 52 19 Kaproş Liliana 54 20 Simion Ştefania 58 21 Niţă Daniel 61 22 Sima Iacob 62 23 Roth Stephanie 67 24 Jurcă Andrei 69 25 Cosma Ştefan 72 26 Mera Vlad 74 27 Andreica Lucian 77 28 Bobar Dumitru 83 29 Mateş Marcel 91 30 Cornea Călin 97 31 Nicula Călin 98 32 Cosma Gheorghe 104 33 Tutuianu Crenguţa 107 34 Bud Laura 110 35 Uţiu Ioan 118 36 Blăjan Marcu 125 37 Mera Dan Andrei 128 38 Goia Liana 131 39 Dumitraş Ioan 135 40 Napău Cornel 143 41 Armeana Gheorghe 149 42 David Viorel 156 43 Danciu Radu 161 44 Cosma Gheorghe 163 Name of the questioneer Page 45 Oprişa Ştefan 164 46 Mignea Iosif Dorin 167 47 Cosma Gheorghe 175 48 Goia Ileana 181 49 Mateiu Augusta 185 50 Jurca Andrei 188 51 Moraru 191 52 Vesa Tudor 199 53 Liliana Mursă 204

Item no. 1

Stakeholder Duminicioiu Ramona name

Stakeholder Cluj Napoca, Str. Gorunului, Nr. 2, 55 address In regards to the meeting: the debate is addressed to the public, therefore the authorities should not address observations.

She expresses her disagreement regarding the presentation held by RMGC: - issues related to the location of Piatra Alba - incorrect, they are just promises. There isn't any infrastructure in the area, therefore it shouldn't have been presented within the public debate Question/ for the PUZ Comment - the implementation of the PUZ doesn't create the jobs that have been presented - she expressed her disagreement regarding the presentations made for the infrastructure. Rosia Montana doesn't have infrastructure due to the fact that the investments were blocked by the previously approved PUZ; also, any other type of alternative investments in the area were blocked by the Project.

In relation to the rules applicable to public debates, we hereby mention that, in compliance with the provisions of Article 31, paragraph (1), item 5 of the Governmental Decision no. 1076/2004 on establishing the procedure for conducting the environmental assessment for plans and programs, the competent authority for environmental protection has the responsibility to chair the public debate, to record the justified proposals submitted by the public and authorities [...] and to make the public debate’s report. Therefore, as long as the competent authority has the right to chair the public debates, it also has the right to take the floor during the public debates, inclusive in relation to issues which could help an exhaustive clarification of certain aspects which might have a certain importance for the environmental permit issuance process.

Annex 2 of the GD 1076/2004 “Standard content for the environmental report”, item 1, stipulates the following: “presentation of the content and key objectives of the plan or program, as well as how these relate to other relevant plans and programs”.

The relevance of this plan results from the fact that the population is an important factor for the environment assessment review.

Annex 2 of the GD 1076/2004 “Standard content for environmental report” item 6, stipulates the Answer following: the potential impact must include the side effects, cumulative, synergic on short, medium and long term, permanent and temporary, positive and negative impact. Jobs creation is one such effect generated by the implementation of the plan.

RMGC Project needs an area of 1054 ha from the area of Roşia Montană communa, which has 4200 ha, thus representing approx. 25 %. The condition of the infrastructure is precarious all over Roşia Montană administrative territory. The statement that RMGC contributed to the blockage of other investments is unsubstantiated.

Roşia Montană communa is made of 16 villages. Currently, Roşia Montană Industrial Zone covers only 25% of this territory, so that only 4 villages are impacted by the proposed mining activities of the Project initiated by S.C. Roşia Montană Gold Corporation S.A. (RMGC). Due to the fact that only mining works took place within this area in the past, this area never had farms or other activities besides industrial functions.

Regarding the majority of the land in Rosia Montana communa, located outside the mining perimeter (75%), we would like to mention that the functions allowed to develop in these areas are multiple and are not, in any way, precluded by the mining project proposed by RMGC.

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Also, please note that there are legal imperative provisions which restrain the development of other projects than those aimed for the mining and processing of natural resources for the areas where these were identified. These legal provisions include: • Article 41(2) of the Mining Law no. 85/2003 ”county councils and local councils will amend and / or update the existing territory arrangement plans and the general urbanism plans for allowing all necessary leased mining works to develop”; • Article 6(1) of the Governmental Decision no. 525/1996 republished in November 11th, 2002, for the approval of the General Urbanism Regulations („GD no. 525/1996”) ”the permitting of definitive constructions, other than industrial constructions, required for the mining and processing of the resources from the areas identified according to the law, which contain proved underground resources, is banned”; • Article 4.4. of the Urbanism Local Regulations of Rosia Montana communa, related to the General Urbanism Plan of 2002,” the permitting of definitive constructions, other than industrial constructions, required for the mining and processing of the resources from the areas identified according to the law, which contain proved underground resources, is banned”.

Consequently, you are kindly asked to take into consideration that the legal provisions mentioned above have an imperative character and are applicable to any similar project, developed by public and/or private entities.

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Item no. 2

Stakeholder Memet Denis name

Stakeholder Sibiu, Str. Dimitrie Cantemir, Nr. 56 address Regarding the presentation of the plan: - there was no presentation made for the environment rehabilitation prior to implementing the Plan (the previous mines which are owned by the State) and afterwards; there is only a mention regarding the existing plan for the rehabilitation of the area, managed by the Romanian Question/ State but this wasn't presented Comment - the Project creates a precedent for other similar approaches; it requires extra care; the topics are presented in numbers - the titleholder must stick to these numbers - transboundary impact - important to take into consideration

As it was already mentioned in the Environmental Report for the Amendment of Zonal Urbanism Plan for the development of the industrial zone, Chapter 2, p. 19-20, Rosia Montana mine, operated by C.N.C.A.F. MINVEST S.A. Deva – Roşiamin S.A. Roşia Montană branch, closed its activity in May 15th, 2006.

The closure of the activity was due, mostly, to the commitment of Romania for adhering to EU referring to the fact of not allowing anymore the operation of mines subsidized from the budget of the State. In accordance with the requirements of the Mining Law, there was issued a plan for closing down the activity; this plan stipulates the dismounting of the equipment and facilities, as well as the rehabilitation of the damages caused to the environment during the whole life of the operation. These obligations rest with C.N.C.A.F. MINVEST S.A. Deva (according to the Additional Deed no. 3/14.10.2000 to the Lease mining license no. 47/21.12.1998, transferred through Order of the National Agency for Mineral Resources no. 310/09.10.2000 from C.N.C.A.F. MINVEST S.A. Deva which becomes affiliated company, over to S.C. Roşia Montană Gold Corporation S.A. which becomes the Owning company).

Alba Environment Protection Agency issued the environmental permit for the Closure Plan. The Plan was endorsed by the Ministry of Economy and Trade, as well as by the Alba Territorial Inspection for Mineral Resources. The Ministry of Economy and Trade transmitted the Plan to the National Agency for Mineral Resources which will make the decision in relation to the closure Answer of the mine.

The funds necessary for implementing the plan will have to be supplied from the State Budget, on the grounds of a Decision of Romania Government.

For this purpose, the Government of Romania approved the Decision no. 644 of June 20th, 2007, published in the Official Gazette, Part I, issue no. 469 of July 12th, 2007 regarding the approval for definitive closure and post closure environment monitoring of some mines and pits, the tenth phase, and amendment of some laws in the field of mine and pit closure, which stipulate the amount of 98 701 298 lei for the closure of Rosia Montana mine, 5 823 868 lei for its annual preservation and 1 689 630 lei for post closure monitoring.

It is provided that, should Roşia Montană mining project is going to be implemented, the closure and environment damages removal works for the objectives located within the industrial zone, will be the responsibility of this Project; the Budget funds will be used only for the objectives located outside this area.

The project included in the zonal urbanism plan has clear provisions referring to the closure works and removal of the environment damages generated by the previous mining works within the industrial zone.

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If Rosia Montana mining project doesn’t receive all the necessary permits for implementation, then the closure and environment rehabilitation works for all the objectives within and outside the industrial zone, will have to be financed from the State Budget.

In relation to the environmental rehabilitation of the area of RMGC mining project, is part of the closure and post closure phase of the entire mining process (as it is stipulated in the documents submitted by RMGC during the public debates and Environmental report for the amendment of the zone urbanism plan, for the industrial development area. Thus, in accordance with the national environment legislation, RMGC is obliged to cover this rehabilitation phase, under the supervision of the competent environment authorities. The above mentioned environmental report (p. 27 and 28) mentions that the key objectives of the Rosia Montana mining project include the removal of environmental damages, through a significant mitigation of the negative impact generated by the previous mining works, as well as the closure /environment rehabilitation and post closure phase, when the decommissioning of the processing plant and various facilities, the completion of filling up Cârnic, Jig and Orlea pits with waste rock, the flooding of Cetate pit, the covering of the industrial objectives with topsoil, long term monitoring for the quality of the environment factors will take place.

In responding to your comment, we kindly ask you to take into consideration that Rosia Montana Project, as it is proposed, will be an example of responsible mining, built in compliance with the strict and mandatory requirements of the relevant national and European legislation.

We believe that the Project will create a positive and beneficial precedent, and not a dangerous one, because we believe that the Roşia Montană Project will be a catalyst for invigorating the mining sector, which has a strategic importance for the economy of Romania and an important part of the rural development.

Under all conditions, the risk of an accident is extremely small. The scale of toxic discharge of a plausible accident is limited and temporary. Under most conditions, even in the event of such an accident, the river water quality remains superior to both surface and drinking water standards even at the point of discharge into the river. In all cases, these safe conditions are re-established hundreds of kilometres before the discharged water reaches the Hungarian border.

The impact of the development of a gold mine at Roşia Montană, Romania, as proposed by Gabriel Resources, has been closely re-examined in order to: • quantify the beneficial effect of the proposed clean-up of the currently continuing pollution from the site caused by the abandoned historic mining operations; and, • assess the risks of an accident and its consequences for the river system from the site of the mine through to the Hungarian border 595 km downstream.

To do these evaluations, RMGC requested Professor Paul Whitehead of University of Reading in UK and Professor Steven Chapra of Tufts University, Boston, USA to undertake river flow and water quality modelling studies, and the Norwegian Geotechnical Institute (NGI) to undertake an event tree hazard analysis of the TMF. Mr. Patrick Corser, P.E. and Mining Sector Leader, MWH, contributed his expertise to both aspects of this work, along with advice from cyanide experts. The joint conclusions of this work are: • the proposed clean-up would achieve an almost complete removal of the current and constant pollution coming from the site, a definite environmental benefit of the project; • the probability of an accident resulting in a toxic discharge is very small (1 chance in 1 million years). The scale of a discharge from an accident would not cause the water, even in the immediate vicinity, to exceed the regulated standard set for safe surface or drinking water - except in the circumstance of a low water flow condition in the river system. Such combined set of conditions was evaluated to have a much lower probability (1 chance in 4 million years). In that event, the water would have, temporarily and to a limited extent, cyanide concentration levels in excess of the regulated water standard over a distance of some 80 km downstream. • The cyanide concentration in these circumstances is not dangerous to human, animal, bird and most aquatic life. Only the most vulnerable of fish species (the river trout) – and only the most vulnerable individual specimens, rather than this entire

Page of answer 2 of 3 Pagina 4 din 206 species in the river or in the area – would potentially be affected. This is because of the limited level of toxic materials that would be discharged by an accident and the limited duration of exposure as the wave of contaminated water passes. As cyanides are not bio-accumulated, once the contaminated water passes, any adsorbed toxins will quickly be excreted or oxidised by partially affected organisms such that they will make a rapid and full recovery in a short time. • In most water flow conditions, the dilution and dispersion in the river would reduce the toxic concentration immediately at the point of discharge into the river to a level that complies with the regulated standards; • these remote and limited impacts from an accident are based on the worst case assumption that the discharge is not contained within the industrial area nor diluted by emergency procedures, both of which are possible mitigating measures; and • given the very robust design, large capacity and the conservative operating criteria of the containment facilities, any worse discharge is unrealistic. The event tree analyses show that the probability of non-performance of the TMF is about 100 times lower than the probability of failure for containment dams, based on the performance observed for dams around the world

The very low risk of accidents and the definite environmental benefits of the clean-up combine to suggest an overall beneficial environmental outcome from the project

In all cases, these safe conditions are re-established hundreds of kilometres before the discharged water reaches the Hungarian border. The risk analysis establishes that any more damaging case is unrealistic.

The following table summarizes the key conclusions:

High Flow river Event Low Flow river conditions conditions Overtopping of the dam due to extreme rain or snow melt Not considered. Extreme - two 1 in 10,000 yr rainfall No breach of water rainfall and low flow condition in 24 hours followed by 1 in standards in river would not occur at 10 yr flood (probability of same time. occurrence less than 1 in 100 million years) Standards exceeded for 80 km downstream, only for Dam breach caused by extreme concurrence of large earthquake or other events (probability of triggers (probability of No breach of water occurrence of 1 in 4 million occurrence 1 in 1 million standards years). years) • Temporary and limited

consequences • potentially mitigated Environmental Impact Assessment (EIA) Not realistic Not realistic hypothetical dam breach Theoretically exceeds Theoretically exceeds cases – unrealistic. standards standards (probability of occurrence 1 in 100 million years or less)

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Item no. 3

Stakeholder Cornea Eugen name

Stakeholder Roşia Montană, Nr. 349 address - where else in the world has this company built a mining project? - the centerline of the dam was moved by 250 meters downstream, so that the storage capacity of the dam was increased. Is that right? He asks clarifications. How many blasting operations per week? What is the distance between the centerline of the dam and Cetate pit? The dam will be subject seismic movements due to the blasting operations from the pits - how were these taken into considerations? Question/ - Is the relocation meaningly or voluntary? What will it happen with the population who Comment doesn't want to be resettled? - Piatra Corbului has a protected area of 2.5 hectares and a buffer zone which includes Taul Cornii which, as presented by the PUZ, is a wasterock stockpile. - The upper side of Taul Anghel is planed to contain a stockpile of topsoil. How will the lake be protected given the location of the pile above the supply source of the lake?

A total of nine sites were analyzed for the construction of the TMF located on the Tolacesti Valley (3 sites), Abruzel Valley (2 sites), Corna Valley (3 sites), Selistei Valley (1 site) plus the option of using the existing Rosia Poieni tailings management facility.

Answer

The comparison of alternatives in terms of environmental impacts indicated as the best option the Rosia Poieni tailings pond site followed by the Corna Valley option, upstream.

Considering the relatively moderate capital and operational costs, as well as the relatively reduced operational complexity, the results of the general alternative ranking indicated the Corna Valley site as the best option.

Page of answer 1 of 4 Pagina 6 din 206 It should be noted that although the Rosia Poieni option is first ranked in terms of environmental and community related impact criteria, but on a position close to the Valea Cornei site location, the high operational costs and increased difficulty for operation of the tailings discharge pipeline had a negative effect on the final ranking.

The Corna Valley TMF site provides the required design storage capacity for the life of the mine, plus an additional contingency capacity. The site has the advantage of being close to the process plant and open pit sites, thus minimizing the project footprint. It should also be noted that the tailings stored in the tailings deposition pond will be detoxified at the plant site.

The details on the alternative analysis regarding the location of the TMF and selection of optimal alternative are presented in Appendix 5 of the Environmental Report of Zonal Urbanism Plan for Roşia Montană Industrial Area.

RMGC will use blasting methods based on ANFO type explosives and blasting initiated by milli- second delay, which will minimize the air shock and the quantity of flyrock, while maximizing the crushing of the rock through low acceleration of the soil. The blasting program will ban overlapping/simultaneous blasting to happen in more than one pit, will restrain blasting to one per business day, per pit and will ban blasting taking place during night time. These measures will help reducing the level of discomfort for the local communities located outside the Project’s footprint.

During a blasting phase, up to 1,296 kg AM will be detonated, resulting in a mining mass of 8,000 – 10,000 t. In order to obtain the daily production (tailings and ore), the movement of the rock of approx. 28 - 32 exploitation panels is necessary, respectively the detonation of a quantity of approx. 10 t of explosive AM-type

The priming will be of sequential type and NONEL-type non-electric fuses (non-electric) and detonating wire will be used, technology that assures a mining mass crushing degree compatible to the loading machines capacity and determines the reduction of the exploded rock spreading area.

For the definitive outlining of the pit sides, bore holes similar to those used for mining will be used, having though a smaller explosive quantity with approx. 20% compared to the production holes, the start being given by dynamite cartridges.

For the detonation the NONEL technology will be used.

The load blasting order will be performed with micro delay, from the hole center to the base part and to the upper one, and from the center hole of the first row to the side extremities and to the following rows, technology that assures the significant decrease of the seismic intensity and an increased effectiveness of the rock movement explosions.

We point out that the TMF dam, which is the critical containment facility for the tailing material, is located approximately 2.4 km from any blasting that will be done for the mining operation. In addition, the TMF dam design has taken into consideration parameters that fully cover the seismic risk existing in the area.

The energy from the seismic sources is considered to be substantially greater than the energy from any of the blasting operations in the open pit. A specific discussion of the seismic design basis and the considerations for blasting impact are presented in the following text.

The design parameters are as follows: − The Operating Basis Earthquake (OBE) It was considered to have a 1 in 475 years return period. This will correspond to a maximum acceleration in the base rock of 0.082 g. The OBE was assumed to have a magnitude of 8, 0 degrees. − Maximum Design Earthquake (MDE) It was considered equal to the Maximum credible Earthquake (MCE). The maximum acceleration of the base rock for an MDE is 0.14 g. The MDE event was assigned a magnitude of 8.0 degrees. These seismic design parameters adopted for the TMF meet or exceed the 1.1 safety

Page of answer 2 of 4 Pagina 7 din 206 factor, considered as sufficient according to the national and European standards for designing of such facilities.

ROŞIA MONTANĂ- A GEOTECHNICAL ASSESSMENT OF THE IMPACTS OF BLASTING ACTIVITIES ON THE BUILDINGS LOCATED IN THE PROTECTED AREA’, undertaken by S.C. IPROMIN S.A., aims at assessing the impacts on the buildings located in the protected area of the blasting operations to be carried out at the Roşia Montană open pits. It also aims at identifying technological solutions for the protection of the buildings located in the protected area or for other heritage buildings.

In order to avoid the damage or deterioration caused by blasting, of buildings located in the protected area, it has been decided that the maximum oscillation speed should be of maximum 2mm/s as measured in the proximity of the historic building to be protected ( this equals a I degree or II degree earthquake measured on the MKS scale) This value was adopted based on the consultation of standards applied in countries with tradition in this field and it meets the requirements of the German DIN 4150/83 standard. In theory, these speeds should not affect the integrity of. the most sensitive and deteriorated historical buildings in Roşia Montană.

A chart has been drawn up to indicate the variation of the oscillation speed correlated with the distance to the protected building, for a maximum load of 7,000 kg TNT on a blasting sequence, detonated instantly.

In order to assess the impacts caused by the blasting carried out at Roşia Montană open pits on the buildings located in the protected area or on other heritage buildings, it has been assumed that the seismic impact will be transmitted in a homogenous environment, and that it will be weakened only due to the distance to the detonation core. This hypothesis presents a supplementary safety parameter as it is expected that the geological environment will further attenuate the seismic impact caused by blasting.

The study that has been undertaken has shown that the classical blasting technology with

Page of answer 3 of 4 Pagina 8 din 206 explosives placed in the blasting holes can be used up to maximum 300 meters from the nearest building.

There are more than 2 km from the dam’s crest to the nearest open pit, therefore, considering the conclusions of the study mentioned above, the impacts caused by the blasting operations on the tailings dam will be insignificant.

- At the Roşia Montană location, alluvium material of a very small thickness (1-20 m) covers the bedrock, and the sediments are relatively stiff. The dynamic response of the sediments with very small thickness might amplify the earthquake motion in the frequency range of 10-20 Hz and might slightly increase the PGA. However, the TMF is a long period structure with a natural frequency most likely below 1 Hz, and amplification of motion in the frequency range of 10-20 Hz has no significant effect on the response. - RMGC updated the study of seismic conditions of the Roşia Montană area in May 2007. The event tree analyses included earthquake shaking with an acceleration of 0.16g as trigger. According to the discussion with Prof. Stematiu at Bucharest University in Romania, a PGA of 0.16g represents an earthquake event with annual occurrence probability of 0.0001. The worst possible case is therefore considered. In addition, during the final design phase, advanced earthquake response analyses, including dynamic analyses will be performed. - In the event tree analyses, this aspect of “worst case” is accounted for. The contributions of earthquake events less severe than the MCE/MDE to the probability of unsatisfactory TMF performance are considered. More detailed seismic response analyses will be done in the detailed design phase. The role of such analysis is intended to confirm that the quality control followed the specifications the design intended to produce at the outset.

In relation to the relocation of some population from Rosia Montana, RMGC would like to stipulate that no forced relocation is possible in compliance with the national legal provisions. In fact, all this relocation/resettlement process is conducted on grounds of direct negotiation/discussion between RMGC and the people who want this, and then they may be relocated to Piatra Alba neighborhood. Moreover, the resettlement process and the evaluation of the properties are done in compliance with the Relocation and Resettlement Action Plan, document issued in accordance with the provisions of the Operational Directive regarding involuntary resettlement (OD 4.30) of the World Bank Group and Equator Principles, and which, at its turn, was subject to public debates with the community.

Our company approached the relocation and resettlement in accordance with an Action Plan for Relocation and Resettlement. The action plan is compiled in compliance with some standards of the World Bank regarding the involuntary resettlement. One of the principles regarding the involuntary process is to convert this process – in a voluntary process. This was our approach, too. There are two methods which can be applied for converting involuntary resettlement into a voluntary process. The first principle is – to avoid involuntary resettlement. RMGC reduced the size of the project for reducing/decreasing the impacted community. The second method is to convert the involuntary resettlement into a voluntary process; there are some very important recommendations in this regard which we followed; the entire process should be based on consultations with the community. The consultations tookd place and this can be proved. The other important way is to approach resettlement as a development project for the community, which RMGC is trying to do.

The existing protected natural zones within Rosia Montana communa territory (according to Law 5/2000, Annex II, photo 2.8 and photo 2.83) are represented by: Piatra Despicată and Piatra Corbului through the document issued in 1967 and Decision 176/1969 of the Managing Committee of Alba County Council.

The protected zone comprises the area of Piatra Corbului – 5.42 ha.

This area comprise both monument values of the nature and values of archaeological heritage (mines opened using the technique of “fire and water”).

The area of Piatra Despicată (0.20 ha), if will be affected by the extension of the Carnic pit, is proposed for relocation on another appropriate environment where it won’t be affected by the

Page of answer 4 of 4 Pagina 9 din 206 future mining works (according to the Proposal submitted by the Romanian Academy, the Commission for Nature’ Monuments protection, no. 316/01.07.2004).

There isn’t any buffer zone to include Corna Lake; the PUZ shows that this lake will be covered by a waste dump.

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Item no. 4

Stakeholder Gruber Gheorghe name

Stakeholder Abrud - Pro Dreptatea address Regarding the PUZ and the Environment Report: - the amendments included in the Plan are not significant, they don't bring important increases of the occupied areas in comparison to the previous PUZ - the protection zone of the historical centre is been increased in comparison to the previous plan - the additional provisions included in the amended plan - the reshaping of the pits, the arrangements of the lakes, the restorations proposed by the Project are all beneficial and they develop the future tourism potential of the town

Question/ Questions for the titleholder: Comment - what measures did you provided for the protection of the houses situated within the historical centre, given the closeness of the pits to this area? - measures provided for the mitigation of the impact on those 13 environment factors. - He finds the presentation of the differences between the current project and the other mines from Baia Mare opportune (different technological flows - which can't have a similar approach, they have different impacts) - Abrud, Bucium, Rosia Montana area is a disadvantaged area. The right to work should be seriously and fairly considered.

The environmental impact assessment (EIA) process has included preliminary cumulative estimates for stationary motorized equipment and linear (vehicular) sources were prepared in order to provide an initial understanding of the potential cumulative noise and vibration impacts from background and Roşia Montană Project sources, and to guide future monitoring and measurement activities as well as the selection of appropriate Best Management Practices/Best Available Techniques for further mitigation of the potential noise and vibration impacts from Project activities. These preliminary estimates apply to major construction activities, as well as the operation and decommissioning/closure of the mine and process plant. They are documented as data tables and isopleth maps for major noise-generating activities in selected, representative Project years; see Tables 4.3.8 through 4.3.16 and Exhibits 4.3.1 through 4.3.9. All these details related to the applied assessment methodology, the input data of the dispersion model, the modeling results and the measures established for the prevention/mitigation/elimination of the potential impact for all project stages (construction, operation, closure) are included in Chapter 4, Section 4.3 Noise and Vibrations of the EIA Report. Answer

Through the use of modern technologies, adequate measures and actions, the vibrations (or earthquakes) generated by the open pit explosions will be maintained within certain limits, such as to ensure the protection of the constructions and other historical monuments existing in the area and proposed for conservation.

S.C. Ipromin S.A. has prepared a study entitled “Geo-mechanical study for measuring the effects of quarrying operations on the constructions located inside the protected area” for the purpose of analyzing the effects of the excavation technologies to be used in the Roşia Montană mining perimeter and identifying the technological solutions to ensure the protection of the constructions existing inside the protected area or other heritage constructions.

In order to prevent the degradation or deterioration of the constructions located inside the protected area, due to the effects of quarrying explosions the project stipulates a maximum oscillation of 0.2 cm/s, measured next to the protected construction.

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Theoretically, these velocities will ensure the integrity of the most sensitive and deteriorated historical constructions existing in Roşia Montană.

Due to the fact that România has not adopted any standards for the protection of constructions against the impact of quarrying explosions, this value has been established based on the relevant standards existing in other states having a long tradition in this field, and complies with the requirements of the German standard DIN 4150/83 – the most exigent European standard (Table no. 1).

Limit values of the oscillation velocity (mm/s) according to DIN 4150/83.

Table no. 1 Building Type Velocity (mm/s) < 10 Hz 10-50 Hz 50-100 Hz Offices and factory buildings 20 20-40 40-50 Residential buildings 5 5-15 15-20 Historical monuments 3 3-8 8-10

One may notice that the value of 3 mm/s is the maximum velocity admitted for the protection of historical monuments.

The secondary effects of open pit explosions, such as the oscillation velocity and over-pressure of the shock wave can be kept under control and reduced by a number of technical and organizational measures.

The over-pressure of the shock wave depends on the amount of explosive load and blasting technique (electrical or non-electrical, instantaneous or micro delay). It implies a risk to human beings and to highly deteriorated constructions. The shock wave over-pressure impact can be reduced using the same methods used in the case of the blast radius (work fronts orientation and compliance with the geometrical parameters of load placement).

The seismic wave (material particle oscillation) represents the most important secondary effect on the soil and constructions. This effect is assessed by the velocity, acceleration or movement of the material particle. For the protection of constructions, velocity is the most widely used parameter.

The oscillation velocity of the material particle has been used as a parameter for the delimitation of the two large areas of the open pits, under the condition of a maximum velocity of 0.2 cm/s measured at the nearest construction from the explosion centre.

This velocity ensures the protection of the constructions, provided that the consolidation works are executed. This value of the maximum velocity (of 0.2 cm/s) has been adopted based on the relevant standards existing in other countries having a long tradition in this field, and complies with the requirements of the German standard DIN 4150/83.

It is important to emphasize that it is not the quarrying technologies using explosives that represent a real threat to the 42 historical buildings, but rather their advanced state of degradation. For this reason, if no measures are taken, these buildings will be inevitably lost.

In conclusion, the special technologies used (within various zones) will not generate any adverse impact on the constructions from the Roşia Montană commune.

When the sequential starter is adequately delayed, only small amounts of explosive are detonated simultaneously. The use of blast sequences controlled with the NONEL delay system allows multiple small explosions, which nonetheless act as one loading, without generating a movement of material outside the blasting area larger than the coverage of each individual explosion.

Millisecond delays techniques are efficient, due to the fact that the movement of rock outside the action radius of a single hole is approximately 3 milliseconds per meter. For example, if two

Page of answer 2 of 8 Pagina 12 din 206 blasting holes rows are drilled at a distance of 8 meters, the second row of holes will explode approximately 24 milliseconds after detonation of the first row. Thus, the time of detonation of the second row of holes can be set up such as to maximize the rock movement efficiency.

When mine blasting is properly executed, an outside observer can see the land going up and down, like a wave front, as if someone induced a smooth oscillation to a carpet placed on the floor. As the wave moves, a series of small intensity explosions will propagate the rock crushing wave.

The results of the remaining potential impacts (after implementation of prevention/ mitigation measures) of the plan on the environmental factors, including transboundary impacts were summarized into six impact categories which ensured identification of significant impacts. The main results of the assessment of the potential cumulative impacts generated by the Project covered by the plan under review on each of the relevant environmental factor/ aspect are the following:

• Population - significant positive impact generated by the Project which involves a major investment related to the improvement of short, medium and long-tern social and economic conditions in the community; • Waste management - neutral impact on water and soil quality. The land use change within the Corna Valley will generate a negative impact during construction and operation, which will be significantly mitigated during post-closure as a result of environmental rehabilitation and introduction of the lands into the natural circuit. • Water - neutral impact with the specification that the provision regarding the collection and treatment of ARD water from previous mining operations and proper management of all waste types will generate a significant positive cumulative impact on surface water and groundwater quality from the entire area. • Air - insignificant negative impact, as the contribution of operations to the pollutant concentrations in the ambient air in areas with sensitive receptors will be reduced and the levels cumulative with the contribution of existing sources will be well below limit values. • Noise and vibrations - insignificant negative impact as the proposed mitigation measures will not generate nuisance noise nor will affect the population or buildings due to vibrations. • Biodiversity, flora and fauna - negative impact during construction and operation, positive impact after mine closure and vegetation of the area. • Cultural, architectural and archeological heritage - significant positive impact due to the actions carried out to date by RMGC and measures contained in the Cultural Heritage Management Plan. • Human health - significant positive impact due to the creation of modern living conditions, improvement of medical assistance and ensuring of environmental quality in accordance with the legal requirements. • Road infrastructure/transport - significant positive impact associated with road infrastructure as a result of its upgrading and increase of traffic safety. Neutral impact associated with the transport related to the Project activities. • Landscape - insignificant negative impact after the rehabilitation and vegetation of the area, the only significant negative impact at local scale consists in the permanent modification of the topography. • Soil/land use - neutral impact due to the impact prevention/mitigation measures. • Material assets - positive impact due to the use of local resources and purchase of property based on mutually advantageous transactions. Significant positive impact due to the high recovery efficiency of precious metals from ore. • Climate factors - insignificant negative impact with the specification that the greenhouse gas emission sources will be removed after the mine closure. • Transboundary impacts - the sole negative significant transboundary impact could relate to the surface water pollution as a result of the TMF dam failure. The residual transboundary impact on the surface water quality associated with the failure of the Valea Corna TMF dam may be classified as neutral.

For more detailed information, please see Chapter 6 and7 of the Environmental Report for

Page of answer 3 of 8 Pagina 13 din 206 Amended Zoning Urbanism Plant for Roşia Montană Industrial Area

In relation to the plans you ask you, we can say that we are a happy case – the environment impact assessment for Rosia Montana Project was made in 2006, the Environment Report was initiated and submitted in 2007, so that all the sustantiation studies, management plans could have been reviewed by the Work Groud and Experts’ team which issued this Environment Report.

These management plans can be also found on the internet web page of the Company: http://www.rmgc.ro/rosia_montana.php?page=raport

This area shall benefit from the opportunities created through the development of this mining project that is aimed at the sustainable development of the entire area.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities existing around Rosia Montana Project area to allow them to obtain qualifications for different jobs or skills, both during construction and operations stages.

To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to recourse to dismissals so as to reduce its costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Rosia Montana Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Aside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development. This approach allows the community to hold, orient and control all relevant development issues in an integrant manner and through the participation of all stakeholders. Roşia Montană Gold Corporation (RMGC) agrees that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by: • An average number of 2337 jobs during construction for a period of two years, most

Page of answer 4 of 8 Pagina 14 din 206 of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own business so as to diversify and develop the economic opportunities provided by RMP: • The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Creation of a business centre and incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial spirit of locals so as to be prepared for the sustainable development needs after completion of RMP.

Material Capital Infrastructure – to include buildings, power supply, transport, water supply and waste management: • Income growth for governmental agencies, totalling US$1.75 billion for over 20 years (construction-production-closure activities), which will constitute supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Quarter in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital Includes: health and education: • Construction of a dispensary and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital Includes: professional training, strengthening the relations within the community, the social

Page of answer 5 of 8 Pagina 15 din 206 networks and the capacity of institutions to support and preserve the cultural heritage: • efforts for the development and promotion of the cultural heritage from Roşia Montană, both for locals and for tourism purposes – RMGC is partner in the Partnership for Roşia Montană cultural heritage ([email protected]); • opportunities for the education of the adults and improvement of their skills, through training programs, funds and scholarships, which have the role to increase the employment chances, both direct, with RMGC, as well as indirect – RMGC is partner in the Roşia Montană Program for skills and trades training; • support programs for vulnerable people and groups, and strengthening of the social network, especially in Roşia Montană – RMGC is partner of Roşia Montană Good Neighbor Program which is coordinated by ProRoşia local ([email protected]); • RMGC supports the partnership coordinated by NGOs which work with the youth from the area, for improving and increasing the potential of the community (www.certapuseni.ro).

Natural Capital Includes: landscape, biodiversity, water quality, ecosystems: • Measures included in the management plan of RMP and in the Standard Operating Procedures for the prevention of accidents and emergencies management (SOP) shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on having environmental protection measures included in economic activities; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Conduct Code through which all RMP suppliers are required to observe RMGC standards on environmental protection

Our project in Roşia Montană bears no comparison to the mine in Baia Mare. From design and facility management, financial assurance, public reporting, stakeholder involvement, to verification procedures and compliance – all of which are followed to the highest standards in our project – the two projects are vastly different. And agricultural development on the tailings management facility surface, which by most standards is hazardous, is not advisable. Better alternatives are touristic enterprises, such as golf courses or hiking trails.

In fact, the Roşia Montană project is subject to the latest strict standards because of the Baia Mare accident. The Romanian Government, in our Terms of Reference, requested that we follow the new European Directive on Waste Management even before it became law in Europe or România.

The Baia Mare accident has fundamentally changed the rules and regulations in Europe for the production, transportation and use of cyanide. The new stricter standards (highest in world) make it impossible for any new mining project with a design and operating procedures similar to the Baia Mare mine, to ever be permitted in Europe.

The Environmental Impact Assessment (EIA) study we submitted last year is the first in România to be EU compliant and is designed so that not a single exemption from existing or planned laws is necessary. To illustrate our commitment to high standards, wherever Romanian and EU requirements differ, Gabriel has chosen to abide by the stricter of the two. In addition, while existing gold mines will have as long as 10 years to come into compliance with stricter regulatory standards, our Roşia Montană Project will meet these standards from the first day of operation.

A large part of the changes since the Baia Mare accident is the introduction of the Cyanide Management Code, to which Gabriel/RMGC is a signatory, and which stipulate strict guidelines for the production, transportation and use of cyanide. The Code also includes requirements related to financial assurance, accident prevention, emergency response, training, public

Page of answer 6 of 8 Pagina 16 din 206 reporting, stakeholder involvement and verification procedures. The International Cyanide Management Code can be referenced at www.cyanidecode.org.

Specifically, the Roşia Montană Project (“RMP”) differs from Baia Mare on every key indicator – such as cyanide detoxification in the process plant, design and construction of the Tailings Management Facility (TMF) and embankments, management of the facility itself, financial assurance, public reporting, stakeholder involvement and verification procedures The Roşia Montană Project is in no way comparable to Baia Mare.

The cyanide used in the project will be subject to a cyanide destruct process and residual cyanide deposited with the process tailings in the Tailings Management Facility (“TMF”) will degrade rapidly to levels well below maximum regulatory levels. Because detoxification will take place before the tailings are deposited to the TMF, they will contain very low concentrations of cyanide (5-7 ppm) which is well below the regulatory limit of 10 ppm recently adopted in the EU Mine Waste Directive. This system of use and disposal of cyanide in gold mining is classified as Best Available Techniques (BAT) by the EU.

This is a key difference with Baia Mare: Baia Mare did not have a cyanide destruction mechanism (detoxification process) in the process plant, as the RMP has. As a result, the concentration of cyanide in the tailings disposed in the TMF at Baia Mare was between 120-400 ppm of cyanide. As a result, in the unlikely event of a spillage, the quantity of cyanide in the water would be a small fraction of what was experienced at Baia Mare.

The proposed dam at the Tailings Management Facility (TMF) and the secondary dam at the catchment basin are rigorously designed to exceed Romanian and international guidelines, to allow for significant rainfall events and prevent dam failure due to overtopping and any associated cyanide discharge, surface or groundwater pollution. Baia Mare was not designed to the same high standards and did not have the requisite capacity to withstand the storm event in 2000.

In order to ensure sufficient capacity to avoid overtopping, the elevation of each stage of the TMF through the life of the project is determined as the sum of the design volume required to: (1) store process water and tailings for the maximum normal operation volume of tailings and the average decant pond volume; (2) store run-off resulting from two PMP storms and, (3) Provide a tailings beach and additional freeboard for wave protection to the tailings volume at each stage during operations; a conservative freeboard criterion is based on the PMF storage plus 1 meter of wave run-up.

The TMF has been designed to meet the more stringent PMP event. Furthermore, in order to ensure that the TMF can store a full PMF volume at all times, it is actually designed to safely hold the flood waters from two consecutive PMP events. The Roşia Montană TMF is therefore designed to hold a total flood volume over four times greater than the Romanian government guidelines and 10 times more than the rainfall that was recorded during the Baia Mare dam failure. An emergency spillway for the dam will be constructed in the unlikely event that pumps fail due to malfunction or power interruption at the same time as the second PMP event. The TMF design therefore very significantly exceeds required standards for safety. This has been done to ensure that the risks involved in using Corna valley for tailings storage are well below what is considered safe in every day life.

The TMF for RMP will be built along the centerline method, by using borrowed rockfill and waste rock – which is BAT for the industry. The EIA describes how the dam will be built with solid rock materials, designed and engineered by MWH, one of the leading dam designers in the world and approved by Romanian certified experts. Prior to operation, the dam must be certified for operations by the National Commission for Dams Safety (CONSIB). RMGC has utilized the world’s foremost experts in these areas to ensure the safety of the project’s workers and the surrounding communities. Baia Mare was built of coarse tailings materials not rockfill and therefore was not able to handle the additional wait of the storm event in 2000.

RMP will have a free draining structure above the starter dam, and a system of under-drains, granular filter zones and pumps – as per BAT – to collect, control and monitor any seepage. Specifically, the tailings ponds and tailings dam have been designed to the highest standards to

Page of answer 7 of 8 Pagina 17 din 206 prevent pollution of groundwater, and to continuously monitor the groundwater and extract any seepage detected – a system verified by hydro-geologic studies. Specifically, the design features include an engineered soil liner system within the TMF basin to meet a permeability specification of 1x10-6 cm/sec, a cut-off wall within the foundation of the starter dam to control seepage, a low permeability core for the starter dam to control seepage, and a seepage collection dam and pond below the toe of the tailings dam to collect and contain any seepage that does extend beyond the dam centerline.

In terms of management, Baia Mare was rated a Category C facility – requiring no special surveillance and monitoring. Roşia Montană Project, however, is Category A, meaning that a full EIA detailing baseline conditions, project impacts and mitigation measures, is required before receipt of permits, as well as future monitoring and reporting requirements.

Finally, Baia Mare lacked a Cyanide Management Plan. By comparison, the Roşia Montană Project has a Cyanide Management Plan, in compliance with the International Cyanide Management Code (ICMC) – BAT for today’s projects.

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Item no. 5

Stakeholder Chifan Andreea name

Stakeholder Bucureşti - Fundaţia Soros address Even though she's not from Rosia Montana, she is a citizen of Romania and she has the same rights like all citizens of this country. Observations: - she raised the issue regarding the legality endorsement for the Local Council Decision, which re-approves the urbanism plans once annulled by the Court. The legal effects and the Question/ legal power are conditioned by the legality endorsement issued by the Prefecture. The Comment Foundation requested this endorsement from the Prefecture, and it awaits on the answer - relocation of the locals: RMGC website says that RMGC applies the relocation plan of the World Bank, which has involuntary character - the construction from Piatra Alba: is there a legal framework for the construction of the village within this location, or not? In relation with the first question, we would like to point to you that, in accordance with the provisions of the Law no. 340/2004 regarding the Prefect and his Institution, republished „In this quality of representative of the Government, the Prefect fulfills the following key duties: [...] to verify the legality of the administrative deeds of the Local Council or of the Mayor”. Based on these provisions, the Prefect doesn’t have the competence to endorse, either favorable or otherwise, the decisions of the Local Council (this would mean to breach the principle of decentralization and local autonomy above mentioned), but to exercise the legality control in relation to these, after their approval. The only way provided by the law through which the Prefect is allowed to exercise this legality control is to challenge the decision of the Local Council within the term stipulated by the law which settles the administrative litigations.

Therefore, from legal point of view, there isn’t any administrative deed as in “legality endorsement” issued by the Prefect, and if such deed would be issued, it would be null for exceeding the legal competences granted to the institution of the Prefect.

Rosia Montana Local Council approved the two existing plans through the decisions no. 45 and 46/2002: (i) general urbanism plan for Roşia Montană communa, and (ii) zonal urbanism plan – Industrial development zone of Roşia Montană communa.

Answer st Alba Iulia Court of Appeal irrevocably admitted, in January 21 2008, the illegality exception in th relation to the decisions no. 45 and 46 of Roşia Montană Local Council, dated July 19 2002. The Court concluded the illegality of the Rosia Montana Local Council Decisions no. 45 and 46/2002 through the Decision no. 75/CA/2007 (attached to the hereby Annex 1), the reason being that the situation of two councilors of Roşia Montană Local Council who voted for the approval of the above mentioned decisions represented a conflict of interest; at that time, these councilors were also employees of the Company.

But, besides admitting this illegality exception, the Court concluded the legality of the Decisions 45 and 46/2002 in what regards the other challenged aspects, stating that the decisions were issued in compliance with the legal provisions relevant for such decisions.

Therefore, the Civil Decision no. 75/CA/21.01.2008 of Alba Iulia Court of Appeal was not brought in regarding a content dispute, but regarding the resolution for an illegality exception. Furthermore, this decision didn’t conclude full nullity of the Decisions 45 and 46 of Rosia Montana Local Council, in contrary, it „admitted the illegality exception of the LCD 45 and 46 of Roşia Montană Local Council” and it “concluded the illegality of the decisions in case”. In other words, the decision issued by the Court of Appeal didn’t affect the validity of the Decisions no. 45 and 46, which remained valid and continuing to generate effects; they

Page of answer 1 of 3 Pagina 19 din 206 are not annulled as we explain below.

Thus, the annulment through judicial means of administrative deeds is possible only by submitting a main action, and complying with the provisions of Article 7 and 8 of the Law for administrative litigations no. 554/2004, so that bringing in a judicial decision which orders the annulment of such deeds is not mistaken and doesn’t produce similar effects to those produced by a judicial decision though which, by means of exception, concludes the illegality of the administrative deed. In this meaning, according to Article 7 of the Law 554/2004, the person who believes that his/her rights or legitimate interest are harmed by an individual administrative deed must ask the issuing public authority or the superior authority, if any, in 30 days from the date the deed is communicated, its ademption in full or in part and, in accordance with Article 8 of the same law: “The person who has any right acknowledged through law or any legitimate interest, harmed by an unilateral administrative deed, and is unsatisfied by the answer received to the previous complaint or didn’t receive any answer within the term provided in Article 2, paragraph (1), item h), is entitled to notify the competent Court of administrative litigation, for requesting the annulment of the deed, in full or in part”.

Or, as above mentioned, the Decisions 45 and 46 were never subject to a law suit for their annulment, reason for which they are still in force, as well as the urbanism plans which they approved.

Although, giving consideration to the admittance of the illegality exception due to the conflict of interests, the Roşia Montană Local Council decided to fix this unclear situation regarding the urbanism activity for which it is responsible for in accordance with the Law no. 350/2001 regarding the territory arrangement and urbanism, updated.

As such, the decision of Roşia Montană Local Council no. 1/29.01.2009 had redone the necessary vote for fixing the gaps of the previous decisions no. 45 and 26/2002 for the approval of the general urbanism plan of Roşia Montană communa. In this way, the Roşia Montană Local Council (Decision no. 1/29.01.2009) complied with the legal obligations for developing the urbanism activity and ensured the compliance with a court decision through the admittance of the Decision no. 1/2009.

In relation to the relocation of some population from Roşia Montană, RMGC would like to stipulate that no forced relocation is possible in compliance with the national legal provisions. In fact, all this relocation/resettlement process is conducted on grounds of direct negotiation/discussion between RMGC and the people who want this, and then they may be relocated to Piatra Alba neighborhood. Moreover, the resettlement process and the evaluation of the properties are done in compliance with the Relocation and Resettlement Action Plan, document issued in accordance with the provisions of the Operational Directive regarding involuntary resettlement (OD 4.30) of the World Bank Group and Equator Principles, and which, at its turn, was subject to public debates with the community.

Our company approached the relocation and resettlement in accordance with an Action Plan for Relocation and Resettlement. The action plan is compiled in compliance with some standards of the World Bank regarding the involuntary resettlement. One of the principles regarding the involuntary process is to convert this process – in a voluntary process. This was our approach, too. There are two methods which can be applied for converting involuntary resettlement into a voluntary process. The first principle is – to avoid involuntary resettlement. RMGC reduced the size of the project for reducing/decreasing the impacted community. The second method is to convert the involuntary resettlement into a voluntary process; there are some very important recommendations in this regard which we followed; the entire process should be based on consultations with the community. The consultations tookd place and this can be proved. The other important way is to approach resettlement as a development project for the community, which RMGC is trying to do.

In relation to the legal framework for the new construction from Piatra Albă, RMGC would like to mention that this is based on the provisions of the Law no. 50/1991 regarding the approval of construction works, updated, Law no. 350/2001 regarding the territory arrangement and urbanism, updated, and the subsequent deeds.

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Item no. 6

Stakeholder Bâlici Ştefan name

Stakeholder Asociaţia A. R. A. address Due to the cultural heritage considerations, the Association has the right to show interest in this Plan, in accordance with the legal provisions: - the presentation didn't include: the compliance with the methodology stipulated by the urbanism legislation regarding the regulations for protected zones - Orlea and Carnic Massif: both are presented as pits. Both include valuable zones. Orlea - historical monument. Carnic - archaeological vestiges of great value, protected by law - the archaeological discharge was annulled by a Court Decision. - Current trends: the protection of the cultural heritage: RMGC Plans regarding the Question/ restoration of the buildings within the historical centre. Why not applying the same approach in Comment the entire town? So that the entire community from Rosia Montana is protected. - The Commission within the presidential administration - Priority measures to protect the current status. The preliminary conclusions of the Presidential commission regarding the settlement from Rosia Montana were disclosed to the public within a preliminary report. This report was presented and assumed by the President of the country. Quotes from this material, such as that the implementation of the Project shall lead to full destruction of the archaeological and historical heritage. He requests RMGC to present its position in relation to this report, if it was taken into consideration.

We mention from the beginning that not the entire area of Roşia Montană is declared “patrimony of exceptional national importance” as, in an erroneous manner, was claimed by the participant to the public debates.

In this regard, Law 5/2000 includes the following protected patrimony values: Piatra Despicata and Piatra Corbului (monument of the nature - Annex 1, items no. 2.8 and 2.83), as well as Roşia Montană Historical Centre (historical monuments – Annex 3, item g)3), the Roman galleries of the mines (Annex 3, item l)1) and houses from XVIII – XIX centuries (Annex 3 item m)2). At its turn, the List of Historical Monuments published in the Official Gazette no. 646 bis, of July 16th, 2004, includes the following areas of archaeological vestiges - Alburnus Maior archaeological site – Rosia Montana, with its components: the Roman settlement from Alburnus Maior, Orlea Area; Roman mine from Alburnus Maior; Orlea Massif; Roman vestiges from Alburnus Maior, Carpeni Area; Roman funerary precincts from “Hop-Găuri” area; “Cătălina Monuleşti” mine from the protected zone of the historical centre of the village; Roman mines from Cirnic Massif, the spot of “Piatra Corbului”. The List of Historical Monuments includes the Historical Centre of Roşia Answer Montană, with the following details related to its location: „The fair of the village”, the Square, Berg neighborhood, Brazilor St., and the area upstream from the Square, towards the lakes.

In relation to the protected built area, the urbanism documentation and its standard content are as established through the Technical Regulations regarding the Methodology of issuance and standard content of the urbanism documentations for protected built areas (PUZ) approved through the Order no. 562/2003 of the Ministry of Transportations, Constructions and Tourism (“The Methodology”). The obligation for the issuance of the urbanism documentations for the protected zone with patrimony value belongs to the local authorities, as provided by Article 5 (3) of Law 5/2000. As far as we know, the local authorities from Rosia Montana have already initiated the procedures required by the law; the draft of the Local Council Decision regarding the initiation of the issuance and approval process of the PUZ for the protected area with patrimony value, of Rosia Montana communa, was disclosed in March 19th, 2009, according to the Law no. 52/2003 referring to the decisional transparency of the public administration, and, as far as we are concerned, we are going to support this process for the best interest of the local communities.

Page of answer 1 of 3 Pagina 21 din 206

As separate issue, it isn’t any less true that the PUZ for Rosia Montana industrial zone, initiated by RMGC and of whose Environment Report is part of the current public debates, covers another area of the administrative territory of Rosia Montana communa. This was issued in accordance with the provisions of another Technical Regulations, namely „Guidelines regarding the issuance methodology and standard content of the PUZ” – Indicative GM – 010 – 2000 approved through Order of the Ministry of Public Works and Territory Arrangement no. 176/N/2000. Thus, the two urbanism documentations are independent from one another and don’t impose conditions one to another.

In relation to Orlea Massif, we mention that, according to the List of Historical Monuments, published in the Official Gazette issue no. 646 bis, of July 16th 2007, the future industrial development zone from Orlea Massif includes two archaeological sites classified as historical monuments, namely – the Roman settlement from Alburnus Maior, Orlea area (code LMI AB-I-m- A-00065.01) and the Roman mine from Alburnus Maior, Orlea area (AB-I-m-A-00065.02). The surface preventive archaeological works for Orlea area, corroborated with the mining archaeological research from Orlea – Ţarina section (underground) are forecasted to take place in future, as disclosed through the EIA Report, chapter „Baseline conditions of the cultural heritage”, vol. 16, p. 43 and to complete in 2012, and the plan of developing the pit in Orlea Massif can happen only after conducting these works. In this regard, RMGC committed to finance a program of preventive archaeological research developed by qualified specialists, so it could then decide if to apply or not the procedure for archaeological discharge.

In accordance with the provisions of the Law 422/2001 regarding the historical monuments, it is possible to apply the declassification procedure within the context of archaeological discharge for archaeological sites, on the grounds of endorsement issued by the National Commission of Archaeology (Ministry of Culture, Cults and National Patrimony). By law, the archaeological discharge is a procedure which confirms the fact that a block of land where archaeological patrimony was identified may be used for current human activities (GO 43/2000, Art. 5, paragraph (2)). Thus, the construction activities involved by the development of the Project within Orlea area, will not be initiated before the archaeological research is complete; this must be carried out in accordance with the national legal provisions and international recommendations and practices. RMGC plans to mine the gold-silver ore from Orlea Massif in the second phase of the Project’s development.

Finally, the archaeological discharge from Orlea Massif and the admittance of the urbanism plan, as well as the relevant documentation are two separate legal requirements, which don’t impose conditions to one another and which the Company assumed as such and plans to compile in accordance with the legal provisions.

In relation to the way the community protection is understoond, the principle of RMGC is not that of offering economic benefits (jobs, high life living standards etc) and asking the community to give up on its cultural values. The Company doesn’t believe that the economic development should be counter-posed to spirituality and traditional values. From this perspective, RMGC appreciates the initiative of Romania President to set up the Presidential Commission for Built Patrimony, Historical and Natural Sites. In relation to the findings of the report issued by this commission and disclosed in September 16th 2008, these have a preliminary character – fact underlined also by the participant to the public debates – and, based on the conclusions, the commission is going to issue, in future, a medium and long term strategy regarding the ways of protecting and promoting the cultural heritage of all country.

Otherwise, as you already know, RMCG allotted over 10 million USD for research and rescue of the patrimony value from the area, involvement of independent experts and the implementation of the highest standards for the process of research, inventory and rescue of the cultural heritage. Moreover, during the issuance of the EIA documentation for Rosia Montana Project, the independent experts’ team issued a strategic document regarding the management of the archaeological and historical patrimony of Rosia Montana area (SIM – RM: Cultural heritage management plan, 2006), which includes details about the commitments and strategy of RMGC concerning the protection and preservation of this area’s patrimony, so that RMP can be implemented while protecting and respecting the cultural heritage of RM.

Page of answer 2 of 3 Pagina 22 din 206 In addition to the obligations assumed by RMGC though the management plans in relation to the protection and preservation of the patrimony values of RM area, there are several other obligations for both the local public authorities of Rosia Montana and Alba county, and central public authorities, namely the Romanian State; these obligations concern the protection and preservation of the archaeological vestiges and historical monuments. In this context, RMGC announces its availability which is already proved, for having a constructive dialog – based on facts and real initiatives – with any competent institution or body, interested in the sustainable development of the cultural patrimony of Roşia Montană.

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Item no. 7

Stakeholder Husti Răduleţ Laura name

Stakeholder Bucureşti - Fundaţia Soros address Observations: - is there a legality endorsement of the PUZ? It is questioned the legality of the current Question/ public debate. Comment - What document is the base for building the village from Piatra Alba

In relation with the first question, we would like to point to you that, in accordance with the provisions of the Law no. 340/2004 regarding the Prefect and his Institution, republished „In this quality of representative of the Government, the Prefect fulfills the following key duties: [...] to verify the legality of the administrative deeds of the Local Council or of the Mayor”. Based on these provisions, the Prefect doesn’t have the competence to endorse, either favorable or otherwise, the decisions of the Local Council (this would mean to breach the principle of decentralization and local autonomy above mentioned), but to exercise the legality control in relation to these, after their approval. The only way provided by the law through which the Prefect is allowed to exercise this legality control is to challenge the decision of the Local Council within the term stipulated by the law which settles the administrative litigations. Therefore, from legal point of view, there isn’t any administrative deed as in “legality endorsement” issued by the Prefect, and if such deed would be issued, it would be null for exceeding the legal competences granted to the institution of the Prefect. Answer In relation to the second question regarding the construction of Piatra Albă residential area, RMGC would like to advise you on the following: (i) the legal framework for the new construction at Piatra exits, and this is based on the provisions of the Law no. 50/1991 on construction works permitting and Law 350/2001 of territory arrangement and urbanism, updated, and all the subsequent deeds, (ii) in relation to the cooperation contract made between RMGC and Roşia Montană Town Hall, which includes, among others, the construction of Piatra Alba, we have to mention that, indeed, this contract was annulled in court and RMGC will have to observe this court decision and the reality this grants. Its annulment doesn’t hinder though the construction from Piatra Albă which RMGC will continue as it committed to in front of the locals from Rosia Montana, and in full compliance with the above mentioned legal framework.

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Item no. 8

Stakeholder Zmeskal Zita name

Stakeholder Budapesta, Ungaria address In accordance to Espoo Convention, there should have been translators provided for Hungarian language for this public debate.

Question/ Observations: Comment - what procedure will it be applied if polluting the Mures and Tisa rivers with heavy metals or cyanides? The accident from Baia Mare it's been reminded - the tailings: the cyanide concentration is below the standards, but there are technologies which can obtain lower concentrations - why not applying a more efficient technology? The legal framework for international relations related to the environmental impact assessment, represented by Law no. 22/2001 for ratification of the Espoo Convention and the Protocol dated May 21st, 2003, regarding the strategic environment assessment to the Convention regarding the environment impact assessment within transboundary context don’t provide for the need of having translators for Hungarian language during the process of public debate. Moreover, the GD no. 1076/2004 for setting up the procedure of environment assessment of plans and programs, mentions expresis verbis the language use to transmit relevant environment information (draft of the plan/program and the environment report), and this is English language. Thus, giving that the transmittal of the environment information carried out in writing, in English, according to the legal provisions in force, the public of the affected party had an equivalent opportunity with the one offered to the public of the country of origin, to express its opinion regarding the draft plan/program, as well as regarding the environment report, within a reasonable period of time.

Our project in Roşia Montană bears no comparison to the mine in Baia Mare. From design and facility management, financial assurance, public reporting, stakeholder involvement, to verification procedures and compliance – all of which are followed to the highest standards in our project – the two projects are vastly different. And agricultural development on the tailings management facility surface, which by most standards is hazardous, is not advisable. Better alternatives are touristic enterprises, such as golf courses or hiking trails. Answer In fact, the Roşia Montană project is subject to the latest strict standards because of the Baia Mare accident. The Romanian Government, in our Terms of Reference, requested that we follow the new European Directive on Waste Management even before it became law in Europe or România.

The Baia Mare accident has fundamentally changed the rules and regulations in Europe for the production, transportation and use of cyanide. The new stricter standards (highest in world) make it impossible for any new mining project with a design and operating procedures similar to the Baia Mare mine, to ever be permitted in Europe.

The Environmental Impact Assessment (EIA) study we submitted last year is the first in România to be EU compliant and is designed so that not a single exemption from existing or planned laws is necessary. To illustrate our commitment to high standards, wherever Romanian and EU requirements differ, Gabriel has chosen to abide by the stricter of the two. In addition, while existing gold mines will have as long as 10 years to come into compliance with stricter regulatory standards, our Roşia Montană Project will meet these standards from the first day of operation.

A large part of the changes since the Baia Mare accident is the introduction of the Cyanide Management Code, to which Gabriel/RMGC is a signatory, and which stipulate strict guidelines for the production, transportation and use of cyanide. The Code also includes requirements

Page of answer 1 of 5 Pagina 25 din 206 related to financial assurance, accident prevention, emergency response, training, public reporting, stakeholder involvement and verification procedures. The International Cyanide Management Code can be referenced at www.cyanidecode.org.

Specifically, the Roşia Montană Project (“RMP”) differs from Baia Mare on every key indicator – such as cyanide detoxification in the process plant, design and construction of the Tailings Management Facility (TMF) and embankments, management of the facility itself, financial assurance, public reporting, stakeholder involvement and verification procedures The Roşia Montană Project is in no way comparable to Baia Mare.

The cyanide used in the project will be subject to a cyanide destruct process and residual cyanide deposited with the process tailings in the Tailings Management Facility (“TMF”) will degrade rapidly to levels well below maximum regulatory levels. Because detoxification will take place before the tailings are deposited to the TMF, they will contain very low concentrations of cyanide (5-7 ppm) which is well below the regulatory limit of 10 ppm recently adopted in the EU Mine Waste Directive. This system of use and disposal of cyanide in gold mining is classified as Best Available Techniques (BAT) by the EU.

This is a key difference with Baia Mare: Baia Mare did not have a cyanide destruction mechanism (detoxification process) in the process plant, as the RMP has. As a result, the concentration of cyanide in the tailings disposed in the TMF at Baia Mare was between 120-400 ppm of cyanide. As a result, in the unlikely event of a spillage, the quantity of cyanide in the water would be a small fraction of what was experienced at Baia Mare.

The proposed dam at the Tailings Management Facility (TMF) and the secondary dam at the catchment basin are rigorously designed to exceed Romanian and international guidelines, to allow for significant rainfall events and prevent dam failure due to overtopping and any associated cyanide discharge, surface or groundwater pollution. Baia Mare was not designed to the same high standards and did not have the requisite capacity to withstand the storm event in 2000.

In order to ensure sufficient capacity to avoid overtopping, the elevation of each stage of the TMF through the life of the project is determined as the sum of the design volume required to: (1) store process water and tailings for the maximum normal operation volume of tailings and the average decant pond volume; (2) store run-off resulting from two PMP storms and, (3) Provide a tailings beach and additional freeboard for wave protection to the tailings volume at each stage during operations; a conservative freeboard criterion is based on the PMF storage plus 1 meter of wave run-up.

The TMF has been designed to meet the more stringent PMP event. Furthermore, in order to ensure that the TMF can store a full PMF volume at all times, it is actually designed to safely hold the flood waters from two consecutive PMP events. The Roşia Montană TMF is therefore designed to hold a total flood volume over four times greater than the Romanian government guidelines and 10 times more than the rainfall that was recorded during the Baia Mare dam failure. An emergency spillway for the dam will be constructed in the unlikely event that pumps fail due to malfunction or power interruption at the same time as the second PMP event. The TMF design therefore very significantly exceeds required standards for safety. This has been done to ensure that the risks involved in using Corna valley for tailings storage are well below what is considered safe in every day life.

The TMF for RMP will be built along the centerline method, by using borrowed rockfill and waste rock – which is BAT for the industry. The EIA describes how the dam will be built with solid rock materials, designed and engineered by MWH, one of the leading dam designers in the world and approved by Romanian certified experts. Prior to operation, the dam must be certified for operations by the National Commission for Dams Safety (CONSIB). RMGC has utilized the world’s foremost experts in these areas to ensure the safety of the project’s workers and the surrounding communities. Baia Mare was built of coarse tailings materials not rockfill and therefore was not able to handle the additional wait of the storm event in 2000.

RMP will have a free draining structure above the starter dam, and a system of under-drains, granular filter zones and pumps – as per BAT – to collect, control and monitor any seepage.

Page of answer 2 of 5 Pagina 26 din 206 Specifically, the tailings ponds and tailings dam have been designed to the highest standards to prevent pollution of groundwater, and to continuously monitor the groundwater and extract any seepage detected – a system verified by hydro-geologic studies. Specifically, the design features include an engineered soil liner system within the TMF basin to meet a permeability specification of 1x10-6 cm/sec, a cut-off wall within the foundation of the starter dam to control seepage, a low permeability core for the starter dam to control seepage, and a seepage collection dam and pond below the toe of the tailings dam to collect and contain any seepage that does extend beyond the dam centerline.

In terms of management, Baia Mare was rated a Category C facility – requiring no special surveillance and monitoring. Roşia Montană Project, however, is Category A, meaning that a full EIA detailing baseline conditions, project impacts and mitigation measures, is required before receipt of permits, as well as future monitoring and reporting requirements.

Finally, Baia Mare lacked a Cyanide Management Plan. By comparison, the Roşia Montană Project has a Cyanide Management Plan, in compliance with the International Cyanide Management Code (ICMC) – BAT for today’s projects.

3. Under all conditions, the risk of an accident is extremely small. The scale of toxic discharge of a plausible accident is limited and temporary. Under most conditions, even in the event of such an accident, the river water quality remains superior to both surface and drinking water standards even at the point of discharge into the river. In all cases, these safe conditions are re-established hundreds of kilometres before the discharged water reaches the Hungarian border.

The impact of the development of a gold mine at Roşia Montană, Romania, as proposed by Gabriel Resources, has been closely re-examined in order to: • quantify the beneficial effect of the proposed clean-up of the currently continuing pollution from the site caused by the abandoned historic mining operations; and, • assess the risks of an accident and its consequences for the river system from the site of the mine through to the Hungarian border 595 km downstream.

To do these evaluations, RMGC requested Professor Paul Whitehead of University of Reading in UK and Professor Steven Chapra of Tufts University, Boston, USA to undertake river flow and water quality modelling studies, and the Norwegian Geotechnical Institute (NGI) to undertake an event tree hazard analysis of the TMF. Mr. Patrick Corser, P.E. and Mining Sector Leader, MWH, contributed his expertise to both aspects of this work, along with advice from cyanide experts. The joint conclusions of this work are: • the proposed clean-up would achieve an almost complete removal of the current and constant pollution coming from the site, a definite environmental benefit of the project; • the probability of an accident resulting in a toxic discharge is very small (1 chance in 1 million years). The scale of a discharge from an accident would not cause the water, even in the immediate vicinity, to exceed the regulated standard set for safe surface or drinking water - except in the circumstance of a low water flow condition in the river system. Such combined set of conditions was evaluated to have a much lower probability (1 chance in 4 million years). In that event, the water would have, temporarily and to a limited extent, cyanide concentration levels in excess of the regulated water standard over a distance of some 80 km downstream. • The cyanide concentration in these circumstances is not dangerous to human, animal, bird and most aquatic life. Only the most vulnerable of fish species (the river trout) – and only the most vulnerable individual specimens, rather than this entire species in the river or in the area – would potentially be affected. This is because of the limited level of toxic materials that would be discharged by an accident and the limited duration of exposure as the wave of contaminated water passes. As cyanides are not bio-accumulated, once the contaminated water passes, any adsorbed toxins will quickly be excreted or oxidised by partially affected organisms such that they will make a rapid and full recovery in a short time. • In most water flow conditions, the dilution and dispersion in the river would reduce the toxic concentration immediately at the point of discharge into the river to a level that complies with the regulated standards;

Page of answer 3 of 5 Pagina 27 din 206 • these remote and limited impacts from an accident are based on the worst case assumption that the discharge is not contained within the industrial area nor diluted by emergency procedures, both of which are possible mitigating measures; and • given the very robust design, large capacity and the conservative operating criteria of the containment facilities, any worse discharge is unrealistic. The event tree analyses show that the probability of non-performance of the TMF is about 100 times lower than the probability of failure for containment dams, based on the performance observed for dams around the world

The very low risk of accidents and the definite environmental benefits of the clean-up combine to suggest an overall beneficial environmental outcome from the project.

In all cases, these safe conditions are re-established hundreds of kilometres before the discharged water reaches the Hungarian border.

The risk analysis establishes that any more damaging case is unrealistic.

The following table summarizes the key conclusions:

High Flow river Event Low Flow river conditions conditions Overtopping of the dam due to extreme rain or snow melt - two 1 in Not considered. Extreme 10,000 yr rainfall in 24 hours followed No breach of water rainfall and low flow by 1 in 10 yr flood (probability of standards condition in river would not occurrence less than 1 in 100 million occur at same time. years) Standards exceeded for 80 km downstream, only for Dam breach caused by large extreme concurrence of earthquake or other triggers events (probability of No breach of water (probability of occurrence 1 in 1 occurrence of 1 in 4 million standards million years) years). • Temporary and limited consequences • potentially mitigated Environmental Impact Assessment (EIA) hypothetical dam breach cases Not realistic Not realistic – unrealistic. Theoretically exceeds Theoretically exceeds (probability of occurrence 1 in 100 standards standards million years or less)

4. The maximum WAD cyanide concentration from the wastes generated by the mining operation, as it is imposed by the European Directive for storing the wastes resulted from the extractive industry (2006), clearly states that the maximum accepted level is 10ppm. This level was established after detailed debates and researches. IPPC/The best available techniques considered the fact that two mines from Europe have succeeded in obtaining a 2ppm concentration, or less, even during the period when assessments were being conducted for preparing this Directive, but however, EU established the limit of 10ppm.

Through the pilot treatment tests carried out for Roşia Montană (RM), where ores from the perimeter of this investment have been used, on which the best available techniques have been applied, the levels of WAD cyanide that have been obtained are lower than 2ppm. (the level that have been secured after the tests are as low as the ones identified by the RMGC technical team during several testing programmes developed on several types of ores all around the world, and this fact that shows that Roşia Montană ore can undergo a detoxification process – but, there are several practical limits. Each type of ore is different and no one can claim that the concentrations of the treated tailings from a mine can be identical to another). In the case of RM, even if the designing of the mining operations conducted for applying the retention times necessary for treatment are doubling the time used in tests as well as the treatment reagents that may furnish with 50% more than the quantity used during the tests, the design of the project and its risk analysis consider, in a conservative manner, that – under operating conditions at full

Page of answer 4 of 5 Pagina 28 din 206 capacity – the wastes will exit the processing plant and enter in their retention installation (tailings management facility, or TMF), at levels of 5-7ppm. Improved levels may be obtained at RM than this one. But, while ensuring low levels of concentration for operating volumes and conditions, this has certainly several practical limits determined by the characteristics of the materials existing on site.

EU regulatory authorities that have established the limit of 10ppm of WAD cyanide do not act irresponsibly with respect to public safety. In fact, hundreds of mining operations manage in a safe manner the materials that have a higher cyanide concentration. (Actually, a normal person should consume over 20 l of water containing a level of WAD cyanide between 5-7ppm at the tailings management facility, in a short period of time – and that is impossible – in order to endanger his/her life). Currently, the mines that are already permitted have to reach a level of WAD cyanide of 50ppm, in compliance with European Directive. And this level, 5 times higher than the level imposed for RM Project, is considered to have a minimum environmental impact. The safety of the employers within the area of the processing plant is a separate issue that at the same time is being analyzed with a great deal of attention.

The fear of a concentration higher than 5-7ppm at the tailings management facility, in the event of the treatment plant breakdown is unsubstantiated due to the fact that the effluent is going to be monitored permanently, and the operations are going to be stopped if the treatment plant does not operate in compliance with the design parameters. Moreover, a monitoring plan for surface and underground waters, together with a periodic reporting, any kind of breaching will be detected and the authorities will be notified (this will be a requirement of the Ministry of Environment that is going to be included in the conditions for securing the environmental permit). The environmental legislation of Romania stipulates the fact that in case of incompliance the adopted measures can vary from fines to the suspension and even cancellation of the environmental permit. No one can afford to ignore such issues.

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Item no. 9

Stakeholder Kappel Iudit name

Stakeholder Budapesta, Ungaria address - was the human factor taken into consideration as element which could cause ecological Question/ accidents? Comment From the point of view of assessing natural and technological risks, including the ones resulted as a consequence of the interference of the human factor, the Environmental Report, emphasizes the fact that measures taken on safety, prevention, implementation of environmental management and the risk systems are mitigating the consequences down to acceptable levels as compared to the most restrictive norms, standards, the best available practices or national or international recommendations in the field. Annex 4 to the Environmental Report amended with Annex 2 presenting the answers to the questions –Quantitative Analysis of Risks – prepared by NGI assesses the probability of occurrence of potential accidents associated with Rosia Montana Answer Project taking into account all factors that might influence the occurrence of such accidents in compliance with designing data and specific literature, and establishes the control actions proposed to be implemented through designing or management in order to mitigate the occurrence associated risks. The impact prevention/mitigation measures are included in: Waste Management Plan, Mine Rehabilitation and Closure Management Plan, Water Management and Erosion Control Plan, Emergency Preparedness and Spill Contingency Plan.

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Item no. 10

Stakeholder Dóci Gabriella name

Stakeholder Budapesta, Ungaria address Greenpeace is an international ecologist organization. It is the obligation of RMGC to provide the translation into Hungarian language.

Observations: Question/ - the effects of a potential cyanide pollution in Romania, in Aries and Mures rivers? Comment - What financial guarantee can be provided to Hungary in case of an accidental pollution? The damages compensation for the pollution from Baia Mare isn't paid yet. - If RMGC fails, how will the rehabilitation of the mining area be implemented? - Will the Romanian State take over the expenses if RMGC goes broke?

The legal framework for international relations related to the environmental impact assessment, represented by Law no. 22/2001 for ratification of the Espoo Convention and the Protocol dated May 21st, 2003, regarding the strategic environment assessment to the Convention regarding the environment impact assessment within transboundary context don’t provide for the need of having translators for Hungarian language during the process of public debate. Moreover, the GD no. 1076/2004 for setting up the procedure of environment assessment of plans and programs, mentions expresis verbis the language use to transmit relevant environment information (draft of the plan/program and the environment report), and this is English language. Thus, giving that the transmittal of the environment information carried out in writing, in English, according to the legal provisions in force, the public of the affected party had an equivalent opportunity with the one offered to the public of the country of origin, to express its opinion regarding the draft plan/program, as well as regarding the environment report, within a reasonable period of time.

1. Under all conditions, the risk of an accident is extremely small. The scale of toxic discharge of a plausible accident is limited and temporary. Under most conditions, even in the event of such an accident, the river water quality remains superior to both surface and drinking water standards even at the point of discharge into the river. In all cases, these safe conditions are re-established hundreds of kilometres before the discharged water reaches the Hungarian border. Answer The impact of the development of a gold mine at Roşia Montană, Romania, as proposed by Gabriel Resources, has been closely re-examined in order to: • quantify the beneficial effect of the proposed clean-up of the currently continuing pollution from the site caused by the abandoned historic mining operations; and, • assess the risks of an accident and its consequences for the river system from the site of the mine through to the Hungarian border 595 km downstream.

To do these evaluations, RMGC requested Professor Paul Whitehead of University of Reading in UK and Professor Steven Chapra of Tufts University, Boston, USA to undertake river flow and water quality modelling studies, and the Norwegian Geotechnical Institute (NGI) to undertake an event tree hazard analysis of the TMF. Mr. Patrick Corser, P.E. and Mining Sector Leader, MWH, contributed his expertise to both aspects of this work, along with advice from cyanide experts. The joint conclusions of this work are: • the proposed clean-up would achieve an almost complete removal of the current and constant pollution coming from the site, a definite environmental benefit of the project; • the probability of an accident resulting in a toxic discharge is very small (1 chance in 1 million years). The scale of a discharge from an accident would not cause the water, even in the immediate vicinity, to exceed the regulated standard set for safe surface or drinking water - except in the circumstance of a low water flow condition in the river

Page of answer 1 of 3 Pagina 31 din 206 system. Such combined set of conditions was evaluated to have a much lower probability (1 chance in 4 million years). In that event, the water would have, temporarily and to a limited extent, cyanide concentration levels in excess of the regulated water standard over a distance of some 80 km downstream. • The cyanide concentration in these circumstances is not dangerous to human, animal, bird and most aquatic life. Only the most vulnerable of fish species (the river trout) – and only the most vulnerable individual specimens, rather than this entire species in the river or in the area – would potentially be affected. This is because of the limited level of toxic materials that would be discharged by an accident and the limited duration of exposure as the wave of contaminated water passes. As cyanides are not bio-accumulated, once the contaminated water passes, any adsorbed toxins will quickly be excreted or oxidised by partially affected organisms such that they will make a rapid and full recovery in a short time.

• In most water flow conditions, the dilution and dispersion in the river would reduce the toxic concentration immediately at the point of discharge into the river to a level that complies with the regulated standards; • these remote and limited impacts from an accident are based on the worst case assumption that the discharge is not contained within the industrial area nor diluted by emergency procedures, both of which are possible mitigating measures; and • given the very robust design, large capacity and the conservative operating criteria of the containment facilities, any worse discharge is unrealistic. The event tree analyses show that the probability of non-performance of the TMF is about 100 times lower than the probability of failure for containment dams, based on the performance observed for dams around the world

The very low risk of accidents and the definite environmental benefits of the clean-up combine to suggest an overall beneficial environmental outcome from the project.

In all cases, these safe conditions are re-established hundreds of kilometres before the discharged water reaches the Hungarian border.

The risk analysis establishes that any more damaging case is unrealistic.

The following table summarizes the key conclusions:

High Flow river Event Low Flow river conditions conditions Overtopping of the dam due to extreme rain or snow melt - two 1 in Not considered. Extreme 10,000 yr rainfall in 24 hours followed No breach of water rainfall and low flow by 1 in 10 yr flood (probability of standards condition in river would not occurrence less than 1 in 100 million occur at same time. years) Standards exceeded for 80 km downstream, only for Dam breach caused by large extreme concurrence of earthquake or other triggers events (probability of No breach of water (probability of occurrence 1 in 1 occurrence of 1 in 4 million standards million years) years). • Temporary and limited consequences • potentially mitigated Environmental Impact Assessment (EIA) hypothetical dam breach cases Not realistic Not realistic – unrealistic. Theoretically exceeds Theoretically exceeds (probability of occurrence 1 in 100 standards standards million years or less)

2. In accordance with the Mining Law from Romania and the EU Directive regarding the mining waste, there will be a financial guarantee for the environmental rehabilitation set up (GFRM)

Page of answer 2 of 3 Pagina 32 din 206 before creating any debt. GFRM is established by the Mining Law (no. 85/2003) and by the Guidelines for applying the Mining Law issued by the National Agency for Mineral Resources (no. 1208/2003). There are, also, two Directives of the EU which relate to the GFRM: The Directive for mining waste („DSM”) and Directive for environment responsibility („DRM”).

The Scope of the Mining Waste Directive is to ensure the coverage for 1) all obligations resulting from the permit issued for the removal of the waste generated by mining works and 2) all costs related to the rehabilitation of the land affected by the waste storage. The Directive for the environment responsibility sets up the remediation activities and the measures which must be implemented by the environment authorities in case of an ecological accident due to mining operators, for the purpose of ensuring that the operators have available the appropriate financial resources for the ecological remediation works.

In accordance with the national legislation, there are two separate and different GFRM. The first one, which is updated every year, focuses on covering the costs forecasted for the ecological rehabilitation related to the operation of the mining objective during the coming year. These costs are minimum 1.5% per year from the total costs, reflecting the annual scheduled works.

The second guarantee, which is also update every year, establishes the costs forecasted for an eventual closure of the Rosia Montana mine. The value of the GFRM aimed for covering the costs related to final environment rehabilitation is calculated as annual quota from the value of the environment rehabilitation works forecasted within the monitoring program, post-closure. This program is part of the Technical Program for the mine closure, a document which has to be approved by the National Agency for Mineral Resources ("ANRM”).

Each GFRM will comply with the detail rules issued by the World Bank and the International Council for Mining and Metals.

The annual updates will be established by independent experts, in liaison with ANRM, in the quality of competent governmental authority in the field of mining operations. The updates ensure that, in the case of very unlikely early closure of the project, and at any time, GFRM always reflects the costs needed for the ecological rehabilitation. (These annual updates will result in an estimate value which exceeds the current closure cost of 135 million USD, because the usual operation of the mine includes certain ecological rehabilitation works).

The annual updates include four viable elements: • Changes brought to the project and which affect the objectives of ecological rehabilitation; • Changes of the legislation in Romania, including the implementation of the UE Directives; • New technologies which improve the methods and practices for ecological rehabilitation; • Changes of the price for certain key products and services needed for the ecological rehabilitation.

Once these updates are completed, the new estimate costs for closure works will be included in the financial statements of RMGC and will be disclosed.

According to the law, several financial tools are available for ensuring that RMGC is capable to cover all the closure costs, so that the Romanian Authorities don’t have any financial responsibility concerning the environment rehabilitation due to Roşia Montană Project.

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Item no. 11

Stakeholder Gomboş Vasile Raul name

Stakeholder Roşia Montană address Pro Rosia and Pro Dreptatea Associations represent the community. He set up a new association for the sustainable development of the area; from economic and social stand points, we are not represented by the Hungarian Party and other associations which don't provide viable Question/ alternatives. Comment - what will happen with the people relocated to La Recea, Alba Iulia? Will they be able to keep their current job?

This area shall benefit from the opportunities created through the development of this mining project that is aimed at the sustainable development of the entire area.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities existing around Rosia Montana Project area to allow them to obtain qualifications for different jobs or skills, both during construction and operations stages.

To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to recourse to dismissals so as to reduce its costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the Answer locals on a 100Km radius around Rosia Montana Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Aside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, orient and control all relevant development issues in an integrant manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) agrees that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable

Page of answer 1 of 3 Pagina 34 din 206 development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by: • An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own business so as to diversify and develop the economic opportunities provided by RMP: • The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Creation of a business centre and incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial spirit of locals so as to be prepared for the sustainable development needs after completion of RMP.

Material Capital Infrastructure – to include buildings, power supply, transport, water supply and waste management: • Income growth for governmental agencies, totalling US$1.75 billion for over 20 years (construction-production-closure activities), which will constitute supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Quarter in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital Includes: health and education: • Construction of a dispensary and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă;

Page of answer 2 of 3 Pagina 35 din 206 • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage: • efforts for the development and promotion of the cultural heritage from Roşia Montană, both for locals and for tourism purposes – RMGC is partner in the Partnership for Roşia Montană cultural heritage ([email protected]); • opportunities for the education of the adults and improvement of their skills, through training programs, funds and scholarships, which have the role to increase the employment chances, both direct, with RMGC, as well as indirect – RMGC is partner in the Roşia Montană Program for skills and trades training; • support programs for vulnerable people and groups, and strengthening of the social network, especially in Roşia Montană – RMGC is partner of Roşia Montană Good Neighbor Program which is coordinated by ProRoşia local ([email protected]); • RMGC supports the partnership coordinated by NGOs which work with the youth from the area, for improving and increasing the potential of the community (www.certapuseni.ro).

Natural Capital Includes: landscape, biodiversity, water quality, ecosystems: • Measures included in the management plan of RMP and in the Standard Operating Procedures for the prevention of accidents and emergencies management (SOP) shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Rosia Montana; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on having environmental protection measures included in economic activities; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Conduct Code through which all RMP suppliers are required to observe RMGC standards on environmental protection

These employees will benefit from exactly the same rights like the other employees who don’t hold a permanent dwelling in Rosia Montana. It is about being granted a room in one of the houses owned by the Company and where they can live during the week and free transport to Alba Iulia at the end of the work week and return trip on Monday morning when they start a new week of work. The company policy includes granting of a work related dwelling, usually for two employees in a house or apartment, knowing that the size of the houses in Roşia Montană is of 2, maximum 3 rooms (each person will benefit of one room).

Page of answer 3 of 3 Pagina 36 din 206

Item no. 12

Stakeholder Andreica Dionisie name

Stakeholder Roşia Montană - Vicepresedinte Asociatia Dezvoltare Durabila Si Politici Publice address Observations - he is for the project, the only source of income for the population in Rosia Montana Question/ - the people who are resettled to Alba Iulia will be employed if the Project is approved, and Comment they will live in houses provided by the company

1. This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

RMGC currently has about 200 employees, out of which 90% live in Roşia Montană, Abrud, Câmpeni and Bucium. RMGC developed training programs to support the local communities neighboring the area of Rosia Montana Project (RMP) in qualifying for various jobs and skills, for the construction phase, as well as for the operations phase.

Over 5000 people signed up for training classes so far, and over 2500 people already graduated these courses or are involved in professional skills development process, mainly in the field of constructions, wood processing or services, such as: security, sales, tourism, social assistance, transport, utilities, environment monitoring, etc.

Unfortunately, due to the obstacles this Project encountered, the company had to stop some programs (including this training program) and even to undergo retrenchments in order to reduce the costs and, in the same time, to maintain the capital needed to continue the development of the Project. The Company will resume these training courses as soon as the situation will allow it.

If the necessary skills are not available on local market, the employment will extend to an area of up to 100km radius the RMP, with first choice being given to the people from Alba county. Our Answer preliminary assessment makes us believe that the majority of jobs for the construction and operations phase will be sourced from the local labour market.

In addition to the direct and indirect benefits, Roşia Montană Project, being the major investment, will improve the economic environment of the area which, at its turn, will encourage and promote the development of economic activities which are not related to mining. It is expected that this qualitative increase of investment and economic environment to develop along with the RMP, even though the area of activities directly related to mining operation is well exceeded. The diversification of economic development is an important benefit of the investments generated to build RMP.

In order to fulfill its commitments, RMGC acknowledges that it must work with the community, authorities and civil society in what regards the issues directly related to the development of the area.

This approach enables the community to hold, orientate and control all issues of relevant development, in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) agrees that, in order to fulfill its commitments related to the sustainable development process, must cover those three pillars of sustainable development process: social, economic and environment. These elements are presented below as 5 interdependent fields, which form the core of sustainable development.

Page of answer 1 of 3 Pagina 37 din 206

Five key components of the sustainable development

Financial capital Includes: the impact on economic development, fiscal administration, taxes and fees, given by: • An average of 2337 jobs during the construction phase, for 2 years; most jobs will be recruited from the local labour market; • 881 jobs during the operations phase, for 16 years; most jobs will be recruited from the local labour market; • 270 jobs during closure phase, for 5-7 years; most jobs will be recruited from the local labour market; • approximately 6560 jobs indirect generated during the construction phase at local and regional level; • approximately 5246 jobs indirect generated during the operations phase at local and regional level; • approximately 1811 jobs indirect generated during the closure phase at local and regional level; • USD 1.75 billion, representing: the share of the Government from the profit, taxes on profit, royalties and other taxes and fees imposed by the local, regional and national authorities from Romania; • USD 2.42 billion, representing the value of the goods and services purchased from Romania.

In order to vary and develop the economic opportunities granted by RMP, RMGC also works with the local stakeholders for starting its own business activities: • set up a micro-credit institution in the area, which enables easy and reasonable access to financing; • set up a business centre for providing support, training (entrepreneurial, business plans, administrative and fiscal management etc), legal, financial and administrative advice, in order to promote the development of the business environment at local and regional level. This is necessary for the supply of goods and services required by RMP, as well as for encouraging the business spirit of the locals, as part of the preparation process for the needs of sustainable development after the completion of RMP.

Material capital Infrastructure – including the buildings, the supply with power, water and waste management: • the increase of income for governmental agencies, up to USD 1.75 billion for over 20 years (phase of construction-production-closure) will represent additional funds which the authorities may allot for improving the infrastructure from community; • Also, RMGC will build the new town, Piatra Alba and Recea residential area in Alba Iulia for the resettlement of the population. Piatra Albă will include a new civic centre, trade and residential areas. Upon the completion of RMP, these will be transferred over to the local authorities. The Action Plan for Resettlement and Relocation (RRAP) contains all the details regarding these initiatives.

Human capital Includes: health and education: • build a medical unit and a private clinic at Piatra Albă, accessible for the entire community, through the health insurances; • upgrade one wing of the hospital from Abrud, accessible for the entire community through the national system of health insurances; • improve the emergency medical system in the region; • build a new school, a civic and residential centre at Piatra Albă; • campaigns for health awareness (in partnership with local authorities and NGOs) in relation to: reproduction health, nutrition and life style, etc. • partnership with education organizations and NGOs regarding the improvement of the education units from the region and access to these; i.e.: the NGOs and the local authorities worked together for setting up an educational partnership with the

Page of answer 2 of 3 Pagina 38 din 206 headquarters at CERT (the Centre of Resources for Youth, Apusei - www.certapuseni.ro).

Social capital Includes: professional training, strengthen the relations within the community, the social networks and the capacity of the institutions to support them and preserve the cultural heritage: • efforts for the development and promotion of the cultural heritage from Roşia Montană, both for locals and for tourism purposes – RMGC is partner in the Partnership for Roşia Montană cultural heritage ([email protected]); • opportunities for the education of the adults and improvement of their skills, through training programs, funds and scholarships, which have the role to increase the employment chances, both direct, with RMGC, as well as indirect – RMGC is partner in the Roşia Montană Program for skills and trades training; • support programs for vulnerable people and groups, and strengthening of the social network, especially in Roşia Montană – RMGC is partner of Roşia Montană Good Neighbor Program which is coordinated by ProRosia local ([email protected]); • RMGC supports the partnership coordinated by NGOs which work with the youth from the area, for improving and increasing the potential of the community (www.certapuseni.ro).

Natural capital Includes: landscape, biodiversity, water quality, ecosystems: • the measures must be included in the management plans of RMP and the Standard Operational Procedures (SOP) for the prevention and management of emergency situations; the implementation of these measures will lead to diminishing of the impact on the environment and improvement of the environment conditions, as provided in the EIA; • the improvement of the environment conditions will increase the life quality in Roşia Montană; • training and support for integrating the aspects related to the quality of environment in the business plans; • awareness campaigns regarding the protection measures for the environment within business activities; • set certain environment standards once the loans though micro-financing are granted, including the monitoring of the environment protection measures; • Business Code of Conduct which impose on the suppliers of RMP the compliance with RMGC standards regarding the environment protection measures.

2. These employees will benefit from exactly the same rights like the other employees who don’t hold a permanent dwelling in Roşia Montană. It is about being granted a room in one of the houses owned by the Company and where they can live during the week and free transport to Alba Iulia at the end of the work week and return trip on Monday morning when they start a new week of work. The company policy includes granting of a work related dwelling, usually for two employees in a house or apartment, knowing that the size of the houses in Roşia Montană is of 2, maximum 3 rooms (each person will benefit of one room).

Page of answer 3 of 3 Pagina 39 din 206

Item no. 13

Stakeholder Caproş Călin name

Stakeholder Roşia Montană, Nr. 175a address Observations - he expresses his distrust in relation to the viability of the project and company. The Question/ company wants to make us aware of the Project's benefits, but the Court of Law dismantles all Comment the arguments of the Company. He asks the company to present a viable solution.

This area shall benefit from the opportunities created through the development of this mining project that is aimed at the sustainable development of the entire area.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities existing around Rosia Montana Project area to allow them to obtain qualifications for different jobs or skills, both during construction and operations stages.

To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to recourse to dismissals so as to reduce its costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the Answer citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Aside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, orient and control all relevant development issues in an integrant manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) agrees that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

Page of answer 1 of 3 Pagina 40 din 206

The five key domains of the sustainable development

Financial Capital Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by: • An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own business so as to diversify and develop the economic opportunities provided by RMP: • The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Creation of a business centre and incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial spirit of locals so as to be prepared for the sustainable development needs after completion of RMP.

Material Capital Infrastructure – to include buildings, power supply, transport, water supply and waste management: • Income growth for governmental agencies, totalling US$1.75 billion for over 20 years (construction-production-closure activities), which will constitute supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Quarter in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital Includes: health and education: • Construction of a dispensary and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc.

Page of answer 2 of 3 Pagina 41 din 206 • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage: • efforts for the development and promotion of the cultural heritage from Roşia Montană, both for locals and for tourism purposes – RMGC is partner in the Partnership for Roşia Montană cultural heritage ([email protected]); • opportunities for the education of the adults and improvement of their skills, through training programs, funds and scholarships, which have the role to increase the employment chances, both direct, with RMGC, as well as indirect – RMGC is partner in the Roşia Montană Program for skills and trades training; • support programs for vulnerable people and groups, and strengthening of the social network, especially in Roşia Montană – RMGC is partner of Roşia Montană Good Neighbor Program which is coordinated by ProRoşia local ([email protected]); • RMGC supports the partnership coordinated by NGOs which work with the youth from the area, for improving and increasing the potential of the community (www.certapuseni.ro).

Natural Capital Includes: landscape, biodiversity, water quality, ecosystems: • Measures included in the management plan of RMP and in the Standard Operating Procedures for the prevention of accidents and emergencies management (SOP) shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on having environmental protection measures included in economic activities; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Conduct Code through which all RMP suppliers are required to observe RMGC standards on environmental protection

Page of answer 3 of 3 Pagina 42 din 206

Item no. 14

Stakeholder David Eugen name

Stakeholder Roşia Montană - Alburnus Maior address Observations - each of us believes we are the lord in Rosia Montana. Alburnus Maior is the only Question/ organization which has the right to oppose the Project. For those who worry for not having a job, Comment we open a pension. He doesn't address observations or questions directly related to the plan, environment report.

Following the questions received during the public consultations held in 2006, it resulted a very large group of answers which were structured in volumes. Volume 53 – Roşia Montană, Sustainable Development of the Community, presents 17 partnerships which we propose to the community. Some already exist, with your support, some are only proposals. One of the partnerships is named Watch Partnership.

Its role is to make sure that Roşia Montană Project is developed in accordance with the national, European and international standards, with the commitments assumed during the EIA process for Rosia Montana Project. This is addressed to both NGOs and authorities. It is not materialized yet, but it is a good idea which we would like to implement. Of course, this can only happen with your help and the stakeholders’.

This area shall benefit from the opportunities created through the development of this mining project that is aimed at the sustainable development of the entire area.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities existing around Roşia Montană Project area to allow them to obtain qualifications for different jobs or skills, both during construction and operations stages.

To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have Answer already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to recourse to dismissals so as to reduce its costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Aside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The

Page of answer 1 of 3 Pagina 43 din 206 diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, orient and control all relevant development issues in an integrant manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) agrees that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by: • An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own business so as to diversify and develop the economic opportunities provided by RMP: • The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Creation of a business centre and incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial spirit of locals so as to be prepared for the sustainable development needs after completion of RMP.

Material Capital Infrastructure – to include buildings, power supply, transport, water supply and waste management: • Income growth for governmental agencies, totalling US$1.75 billion for over 20 years (construction-production-closure activities), which will constitute supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Quarter in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be

Page of answer 2 of 3 Pagina 44 din 206 transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital Includes: health and education: • Construction of a dispensary and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage: • efforts for the development and promotion of the cultural heritage from Roşia Montană, both for locals and for tourism purposes – RMGC is partner in the Partnership for Roşia Montană cultural heritage ([email protected]); • opportunities for the education of the adults and improvement of their skills, through training programs, funds and scholarships, which have the role to increase the employment chances, both direct, with RMGC, as well as indirect – RMGC is partner in the Roşia Montană Program for skills and trades training; • support programs for vulnerable people and groups, and strengthening of the social network, especially in Roşia Montană – RMGC is partner of Roşia Montană Good Neighbor Program which is coordinated by ProRoşia local ([email protected]); • RMGC supports the partnership coordinated by NGOs which work with the youth from the area, for improving and increasing the potential of the community (www.certapuseni.ro).

Natural Capital Includes: landscape, biodiversity, water quality, ecosystems: • Measures included in the management plan of RMP and in the Standard Operating Procedures for the prevention of accidents and emergencies management (SOP) shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on having environmental protection measures included in economic activities; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Conduct Code through which all RMP suppliers are required to observe RMGC standards on environmental protection

Page of answer 3 of 3 Pagina 45 din 206

Item no. 15

Stakeholder Cosma Gheorghe name

Stakeholder Abrud, Str. Aleea Parcului, Bl. M, Sc. 2, Ap. 21 address Observations - the public debate is welcomes and creates the premises for developing an area for mining. The break-through of the economic crash is made by a mining project; it is a good project. The blasting operations which will be performed in the pits will apply the delay explosion Question/ methodology. Comment - Does anybody know about any industrial activity in Hungary which affects Romania? The rivers in Hungary were so polluted. The answer is requested from the authorities from Hungary and from Greenpeace.

This area shall benefit from the opportunities created through the development of this mining project that is aimed at the sustainable development of the entire area.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities existing around Roşia Montană Project area to allow them to obtain qualifications for different jobs or skills, both during construction and operations stages.

To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to recourse to dismissals so as to reduce its costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

Answer If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Aside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development. This approach allows the community to hold, orient and control all relevant development issues in an integrant manner and through the participation of all stakeholders. Roşia Montană Gold Corporation (RMGC) agrees that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable

Page of answer 1 of 3 Pagina 46 din 206 development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by: • An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own business so as to diversify and develop the economic opportunities provided by RMP: • The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Creation of a business centre and incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial spirit of locals so as to be prepared for the sustainable development needs after completion of RMP.

Material Capital Infrastructure – to include buildings, power supply, transport, water supply and waste management: • Income growth for governmental agencies, totalling US$1.75 billion for over 20 years (construction-production-closure activities), which will constitute supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Quarter in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital Includes: health and education: • Construction of a dispensary and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă;

Page of answer 2 of 3 Pagina 47 din 206 • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage: • efforts for the development and promotion of the cultural heritage from Roşia Montană, both for locals and for tourism purposes – RMGC is partner in the Partnership for Roşia Montană cultural heritage ([email protected]); • opportunities for the education of the adults and improvement of their skills, through training programs, funds and scholarships, which have the role to increase the employment chances, both direct, with RMGC, as well as indirect – RMGC is partner in the Roşia Montană Program for skills and trades training; • support programs for vulnerable people and groups, and strengthening of the social network, especially in Roşia Montană – RMGC is partner of Roşia Montană Good Neighbor Program which is coordinated by ProRoşia local ([email protected]); • RMGC supports the partnership coordinated by NGOs which work with the youth from the area, for improving and increasing the potential of the community (www.certapuseni.ro).

Natural Capital Includes: landscape, biodiversity, water quality, ecosystems: • Measures included in the management plan of RMP and in the Standard Operating Procedures for the prevention of accidents and emergencies management (SOP) shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on having environmental protection measures included in economic activities; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Conduct Code through which all RMP suppliers are required to observe RMGC standards on environmental protection

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Item no. 16

Stakeholder Furdui Dorin name

Stakeholder Roşia Montană, Str. Brazilor, Nr. 408 address Observations Question/ - what will happen with the employees who were retrenched? Will they be on the priorities Comment list when the employment will start? Will the partnerships with the NGOs be maintained?

By the time of employment resumption, all jobs will be publicly announced. All enrolled candidates which will present the complete file, by the time that the interview will take place, will be able to participate to the job contest. For the same level of experience and competence, the inhabitants from Roşia Montană will have priority.

Every one can participate at the recruitment interview, in equal conditions with other applicants. The recruiters will have to comply with the requirements provided by the recruitment announcements.

At the employment, priority is given to people having no job and therefore no social protection, if Answer they comply with the requirements for the job. RMGC specify that all employments will be done in accordance with the previsions stipulated in GO no. 137/2000 regarding the prevention and penalty of all discrimination forms, in order to make sure that equal opportunity is granted to all people that don’t benefit from the social protection in comparison with the other persons, group of individuals or communities.

In relation with the partnerships we have with the local NGOs, we can tell you that, yes, they will continue as long as our activity will develop in Roşia Montană area.

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Item no. 17

Stakeholder Pencea Roxana name

Stakeholder Cluj-Napoca address I'm from Cluj Napoca, tax-payer of the Romanian State (the material compensations for Hungary will be paid from my money)

Observations - how could a PUZ be made for Orlea protected zone is they aren't any studies or Question/ archaeological discharges? Why isn't made in 9 years time, when there will be more data? The Comment Plan will impact 4 towns from the area. Why not making 4 different PUZs? What's going to happen is one of the towns doesn't approve the PUZ? - Please confirm that now the environment approval procedure will resume due to this PUZ - Will the PUZ for Orlea block the construction of a hotel in the area?

In relation to the first question, RMGC would like to mention that the current public debate took place within the environment impact assessment procedure for the amendments of the PUZ, Roşia Montană Industrial zone dated 2002 and, as such, this procedure is not related to the zonal urbanism plan which regulates the protected zone. In other words, the Article 43 of the Law no. 350/2001 regarding the territory arrangement and urbanism, the zone territory arrangement plan, has the role of directing this activity, which is conducted for solving specific issues of some territories and, therefore, this plan has a key role concerning the urbanism regulations. From legal stand point, there isn’t a requirement related to archaeological discharge for submitting the zone urbanism plan, therefore the two legal requirements don’t impose conditions to one another.

The archaeological discharge issue could be brought into discussion only if construction works are going to be conducted within a protected zone; these constructions are not permitted through the approval of the urbanism plan we are currently discuss. Otherwise, in relation to Orlea, it was mentioned that the preventive surface archaeological research for Orlea area, corroborated with the mining archaeological research from Orlea – Tarina area (underground) are forecasted to happen in future, as it was provided by the EIA Report, Chapter „Baseline conditions study for the cultural heritage”, Volume 16, p. 43 and they are going to be completed in 2012. The Answer intention of developing the pit within Orlea Massif can be materialized only after these research works are completed. In this regard, RMGC assumed the commitment for financing a program of preventive archaeological research which will be conducted by specialists, and then it will decide if to archaeological discharge the area or not.

In accordance with the provisions of the Law 422/2001 regarding the historical monuments, it is possible to apply the declassification procedure within the context of archaeological discharge for archaeological sites, on the grounds of endorsement issued by the National Commission of Archaeology (Ministry of Culture, Cults and National Patrimony). By law, the archaeological discharge is a procedure which confirms the fact that a block of land where archaeological patrimony was identified may be used for current human activities (GO 43/2000, Art. 5, paragraph (2)). Thus, the construction activities involved by the development of the Project within Orlea area, will not be initiated before the archaeological research is complete; this must be carried out in accordance with the national legal provisions and international recommendations and practices. RMGC plans to mine the gold-silver ore from Orlea Massif in the second phase of the Project’s development.

In relation to the approval of the amendments proposed for the existing PUZ documentations for Rosia Montana, Campeni, Bucium and Abrud, we must say that these amendments need to be

Page of answer 1 of 2 Pagina 50 din 206 approved at the end of the permitting phase, by the competent authorities (including the completion of the hereby environment assessment procedure). The approval will be issued by the Local Councils of the towns independently impacted, in accordance with the provisions of the Law no. 215/2001 of the local public administration, which provides, through Article 45, paragraph (2) that the documentation will be admitted upon the vote of the majority of the Local Councilors, in compliance with the following decisions of the Local Council:...e) decisions regarding the urban organization and development of the towns and territory arrangement. The decisions of the Local Councils of the towns affected by the amendment of the existing zone urbanism plans will be made, independently, in accordance with the principle of autonomy and decentralization of the local authorities. Also, there isn’t any legal provision to provide for the need of admitting a PUZ only within the boundaries of a town and, moreover, the hereby plan is actually an amendment of an existing and admitted urbanism plan.

In relation to the last question, RMGC would like to mention that no PUZ documentations for any of the towns where the amendments of the zone urbanism plans are going to be applied were annulled by the Court. All existing urbanism plans for these towns (irrespective of their type) are currently in force. In relation to the impact assessment procedure started by RMGC for obtaining the environmental permit needed for implementing the mining project, we have to mention that: (i) this procedures is different to the hereby environment assessment procedure – the first one was conducted in strict relation for Rosia Montana mining project, and the second one, in relation to the amendments of the zone urbanism plan for the industrial zone, and (ii) even though there are several similarities, the two environment assessments are regulated by different laws in force in Romania, and these are: • The environment assessment for plans and programs – Government Decision no. 1076/2004, and • The environment impact procedure – Government Decision no. 1213/2006 the establishing the environment impact assessment framework, related to certain public and private projects.

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Item no. 18

Stakeholder Brădaţan Tudor name

Stakeholder Roşia Montană address Observations - we talk about a PUZ for a big mining company. The documents from the Ministry can't have anything to do with the Plan; the documentation submitted to the Ministry is based on the urbanism plans. Is the procedure for obtaining the environment permit resumed simply because Question/ the urbanism plan file is now re-submitted? Comment - The investments in Rosia Montana are burdened due to these urbanism plans and related restrictions, the people can't earn their bread. Why can't other investments start? The jobs can be offered in other fields, not just in mining.

About the EIA procedure started by RMGC for obtaining the environment permit needed to implement the mining project, we mention that: (i) this procedure differ from the hereby environmental assessment procedure. The first mentioned procedure is followed strictly in relation with Rosia Montana mining project, and the second mentioned procedure in followed in relation with the amendments brought to the zonal urbanism plan for the industrial zone and (ii) even though these two procedures include several similarities, they follow different legislation in force, namely: - The environmental assessment for plans and programs – Government Decision no. 1076/2004, and - The EIA – Government Decision no. 1213/2006 on establishing the framework procedure for environment impact assessment for certain public and private projects.

RMGC Project needs an area of 1054 ha from the area of Rosia Montana communa, which has 4200 ha, thus representing approx. 25 %. The condition of the infrastructure is precarious all over Rosia Montana administrative territory. The statement that RMGC contributed to the blockage of other investments is unsubstantiated.

Roşia Montană communa is made of 16 villages. Currently, Rosia Montana Industrial Zone covers only 25% of this territory, so that only 4 villages are impacted by the proposed mining activities of the Project initiated by S.C. Ro ia Montan Gold Corporation S.A. (RMGC). Due to Answer ş ă the fact that only mining works took place within this area in the past, this area never had farms or other activities besides industrial functions.

Regarding the majority of the land in Rosia Montana communa, located outside the mining perimeter (75%), we would like to mention that the functions allowed to develop in these areas are multiple and are not, in any way, precluded by the mining project proposed by RMGC.

Also, please note that there are legal imperative provisions which restrain the development of other projects than those aimed for the mining and processing of natural resources for the areas where these were identified. These legal provisions include: • Article 41(2) of the Mining Law no. 85/2003 ”county councils and local councils will amend and / or update the existing territory arrangement plans and the general urbanism plans for allowing all necessary leased mining works to develop”; • Article 6(1) of the Governmental Decision no. 525/1996 republished in November 11th, 2002, for the approval of the General Urbanism Regulations („GD no. 525/1996”) ”the permitting of definitive constructions, other than industrial constructions, required for the mining and processing of the resources from the areas identified according to the law, which contain proved underground resources, is banned”; • Article 4.4. of the Urbanism Local Regulations of Rosia Montana communa, related to the General Urbanism Plan of 2002,” the permitting of definitive constructions, other than

Page of answer 1 of 2 Pagina 52 din 206 industrial constructions, required for the mining and processing of the resources from the areas identified according to the law, which contain proved underground resources, is banned”.

Consequently, you are kindly asked to take into consideration that the legal provisions mentioned above have an imperative character and are applicable to any similar project, developed by public and/or private entities.

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Item no. 19

Stakeholder Kaproş Liliana name

Stakeholder Vicepreşedinte Pro Dreptatea Roşia Montană address Observations Question/ - if there will be another phase of the relocation process and if so, when? There are 700 Comment job applications - when will the employment begin?

For the time being, the company stoped the land aquisition process.

As soon as the situation permits it, this process will be resumed and announced beforehand.

By the time of employment resumption, all jobs will be publicly announced. All enrolled candidates which will present the complete file, by the time that the interview will take place, will be able to participate to the job contest. For the same level of experience and competence, the inhabitants from Rosia Montana will have priority.

Every one can participate at the recruitment interview, in equal conditions with other applicants. The recruiters will have to comply with the requirements provided by the recruitment announcements.

At the employment, priority is given to people having no job and therefore no social protection, if they comply with the requirements for the job. RMGC specify that all employments will be done in accordance with the previsions stipulated in GO no. 137/2000 regarding the prevention and penalty of all discrimination forms, in order to make sure that equal opportunity is granted to all people that don’t benefit from the social protection in comparison with the other persons, group of individuals or communities.

This area shall benefit from the opportunities created through the development of this mining Answer project that is aimed at the sustainable development of the entire area.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities existing around Rosia Montana Project area to allow them to obtain qualifications for different jobs or skills, both during construction and operations stages.

To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to recourse to dismissals so as to reduce its costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Rosia Montana Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local

Page of answer 1 of 4 Pagina 54 din 206 community.

Aside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, orient and control all relevant development issues in an integrant manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) agrees that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by: • An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own business so as to diversify and develop the economic opportunities provided by RMP: • The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Creation of a business centre and incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial spirit of locals so as to be prepared for the sustainable development needs after completion of RMP.

Material Capital Infrastructure – to include buildings, power supply, transport, water supply and waste management:

Page of answer 2 of 4 Pagina 55 din 206 • Income growth for governmental agencies, totalling US$1.75 billion for over 20 years (construction-production-closure activities), which will constitute supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Quarter in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital Includes: health and education: • Construction of a dispensary and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage: • efforts for the development and promotion of the cultural heritage from Roşia Montană, both for locals and for tourism purposes – RMGC is partner in the Partnership for Roşia Montană cultural heritage ([email protected]); • opportunities for the education of the adults and improvement of their skills, through training programs, funds and scholarships, which have the role to increase the employment chances, both direct, with RMGC, as well as indirect – RMGC is partner in the Roşia Montană Program for skills and trades training; • support programs for vulnerable people and groups, and strengthening of the social network, especially in Roşia Montană – RMGC is partner of Roşia Montană Good Neighbor Program which is coordinated by ProRoşia local ([email protected]); • RMGC supports the partnership coordinated by NGOs which work with the youth from the area, for improving and increasing the potential of the community (www.certapuseni.ro).

Natural Capital Includes: landscape, biodiversity, water quality, ecosystems: • Measures included in the management plan of RMP and in the Standard Operating Procedures for the prevention of accidents and emergencies management (SOP) shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Rosia Montana; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on having environmental protection measures included in economic activities; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Conduct Code through which all RMP suppliers are required to observe RMGC standards on environmental protection

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Item no. 20

Stakeholder Simion Ştefania name

Stakeholder Cluj Napoca address Observations - there is a difference between the relative nullity and absolute nullity from legal stand point. The Local Council decision #1 will be challenged. The link between the PUZ and the environment assessment, the urbanism certificate and PUZ, with the Urbanism certificate, Article 32 of the Law 350/2001 urbanism, Order 117/2006 - from chronological stand point, it is SEA first Question/ and then EIA. Comment - The PUG and PUZ from 2002 can't generate any type of legal effects; one can't update something that doesn't have any effect - The closure plan of the mine owned by the State should have been discussed within the Focus Group; there must be an urbanism plan, an environmental permit for Minvest Deva. How is it possible to have a closure plan and a PUZ for industrial zone made for the same site?

To respond to your first question, regarding the validity of the Decision 1/January 29th 2009, of Roşia Montană Local Council, RMGC would like to clarify some issues:

• In January 21st, 2008, the Court of Appeal from Alba Iulia, through the decision no. 75/CA/2007, irrevocably admitted, the exception of illegality regarding the Decisions no. 45 and 46 of the Rosia Montana Local Council dated July 19th, 2002. Thus, the Court concluded the illegality of these Decisions (no. 45 and) 46/2002), on the following grounds: „at the date these two decisions were voted (July 19th, 2002), the councilors Avram Cornel and David Constantin were employees in the position of foreman with RMGC, the legal initiator of the PUG and PUZ amendments”. But, in the same time, the Court concluded the legality of the Decisions no. 45 and 46/2002 concerning the other aspects sued, and these are: o „in a correct manner, it is concluded that the decisions challenged in the court were issued in compliance with the protected zones, which doesn’t exceed the competence of the local authorities”; o „in relation to the disclosure of the file for public debate, there are proofs that the documentation was made available by the Rosia Montana Town Hall in order to be consulted by the residents, and that no complaints were submitted”; Answer o „Law no. 137/1995, updated in February 17th, 2000, in force at the time the decisions were admitted, didn’t include any provisions regarding the requirement for the issuance of the environment permit on the grounds of the environmental assessment, but only for the environment agreement, which was issued”. • According to the law, the admittance of the illegality exception generates limited effects (namely, only within the litigation it was included in and in relation to the parties involved in the litigation) and, therefore, doesn’t affect the validity of the Decisions no. 45 and 46. Still, the above mentioned decision of the Court revealed some will-flaws which could create interpretations and/or obstacles regarding the following urbanism activity in Roşia Montană communa, and which RM Council decided to fix for the best interest of safety and legal certainty concerning the urbanism activity. Moreover, the Local Council of Roşia Montană has to comply with the Law no. 350/2001 on territory arrangement and urbanism, updated, including the following provisions: a) the general urbanism plan must exist for each town, as grounds for the urbanism activity; b) the territory arrangement carried out through the urbanism activity is mandatory and ongoing, made for the interest of the public, and c) the Local Council is responsible for the appropriate development of the urbanism activity and, as such, it must take the necessary measures for making sure that no holdup exists in this meaning. Consequently, the decision of Rosia Montana Local Council no. 1/January 29th, 2009 has reiterated the vote (which was previously

Page of answer 1 of 3 Pagina 58 din 206 vitiated), so that the gaps left in the old decisions of Rosia Montana Local Council, no. 45 and 46/2002 for the approval of the general urbanism plan, and zone urbanism plan of Rosia Montana communa are corrected. In this way, the Local Council of Rosia Montana, through the Decision no. 1/29.01.2009, complied with the obligations regarding the urbanism activity and ensured the compliance with a judicial decision, issued by a competent court. • From legal stand point, the illegality exception quoted within the administrative litigation process doesn’t have the same legal meaning as the nullity. From this point of view, we have to mention that the Decisions no. 45 and 46, as well as the urbanism plans (general and zonal) which were approved on the grounds of these decisions, remained in force and continue to have legal effects; they are not annulled through a court decision. As such, the statement that the Decisions 45 and 46, and the related plans are affected by nullity contradicts the legal reality.

In relation to the second issue, concerning the relation between the hereby environment assessment for the amendments of the existing urbanism plans for Rosia Montana, Campeni, Bucium and Abrud, and the environment impact assessment made by RMGC in relation with the Project, we have to underline the following: o even though they include several similarities, the two environmental assessment are regulated by different national laws, namely: Governmental Decision no. 1076/2004 for the environmental assessment for plans and programs, and Governmental Decision no. 1213/2006 for the environment impact procedure regarding the framework for environmental assessment for certain public and private projects; o the law doesn’t stipulate a certain sequence for the two environment assessment processes (when both are required); the only references made in this regard can be found in Order no. 117/2006 of Environment Ministry regarding the Handbook for applying the environment assessment procedure for plans and programs, which role is to guide and not to impose any legal requirement of a normative deed.

As mentioned above, there isn’t any judicial decision or any other legal deed issued by other administrative authorities or authorities with administrative jurisdiction competences from where one could conclude that the general and zonal urbanism plans approved for Roşia Montană communa in 2002 would be null, irrespective of the type of nullity. The illegality exception, from legal stand point, doesn’t mean the same thing with the institution of nullity.

In relation with the last question related to the closure plan for Minvest mine, RMGC would like to present the following clarifications:

The lack of economic viability of the mine, as well as the impossibility to sell the concentrate obtained from its activity, made Minvest to close the production of Rosiamin Branch related to the mining from Cetate pit, starting from May 16th, 2006. The decision was approved by the Board of Minvest through the Deed no. 94/31.03.2006; the National Agency for Mineral Resources and the Ministry of Economy and Trade were advised in this regard. The reason for the closure of the production rests with the unprofitability of the ore mining, in compliance with the provisions of the Article 51, letter c) of the Mining Law no. 85/2003. Thus, for 1000 lei production-merchandise, the cost was 3380 lei in 2005 and 3500 lei in 2006 (Report no. 33/August 18th, 2006 of the Technical-Economic Council of Minvest).

As soon as the closure was endorsed by the National Agency for Mineral Resources and Ministry of Economy, it was also approved through Governmental Decision no. 644/2007 on the approval of definitive closure and post-closure environment monitoring for mines and pits, the tenth phase, and the amendment of certain deeds in the field of mine and pits closure (“HG no. 644/2007”). Minvest mine from Roşia Montană is described at Item 41 from the Annex no. 1 of the GD no. 677/2007; the lump sum of expenses to be supplied from the State Budget for closure is 98,701,298 lei, plus the cost for annual preservation of 5,823,868 lei and post-closure monitoring of 1,689,630 lei. As per the Closure Plan, the costs were broken-down into two items, namely (i) the cost related to the objectives within the license perimeter, and (ii) costs for preservation, closure and ecological reconstruction of the objectives located outside the license perimeter, the latter having priority in implementation.

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The Romanian State doesn’t have the funds required for the closure and therefore, the saving which the issuance of the permits and approvals for RMGC will bring to the Budget is estimated to 49,628,848 lei, the closure and preservation of the objectives within the license perimeter, within the footprint of RMP, being no longer needed. As per the Closure Plan, the works of closure and ecological reconstruction will be linked with the production schedule of RMGC.

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Item no. 21

Stakeholder Niţă Daniel name

Stakeholder Arad, Str. Emanoil Gojdu, Nr. 1b, Ap. 9 (Asociatia Milenium Center Arad) address It's been an erroneous perception created in relation to the NGOs. There are concerns, irrespective of the position.

Observations Question/ - how did the company plan to offer the parallel monitoring of the indicators from the Comment business plan to the NGOs? - The meetings such as public debates are not efficient; therefore I believe there should be a procedure which could allow the organizations to express their point of view in a civilized manner. The role of these debates is not to clarify the issues.

Following the questions received during the public consultations held in 2006, it resulted a very large batch of answers which were structured in volumes. Volume 53 – Roşia Montană, Sustainable Development of the Community, presents 17 partnerships which we propose to the community. Some already exist, with your support, some are only proposals. One of the partnerships is named Watch Partnership.

Answer Its role is to make sure that Roşia Montană Project is developed in accordance with the national, European and international standards, with the commitments assumed during the EIA process for Roşia Montană Project. This is addressed to both NGOs and authorities. It is not materialized yet, but it is a good idea which we would like to implement. Of course, this can only happen with your help and the stakeholders’.

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Item no. 22

Stakeholder Sima Iacob name

Stakeholder Roşia Montană address Observations - Baia de Aries mine uses cyanide, and dosing was done with the shovel. He finds the Question/ concerns regarding the cyanide unsubstantiated given the technological progress. Comment - In 1997, when Rosia Poieni started, there were jobs created. What will happen with the population outside the impact area?

The most efficient and economic process for extracting gold and silver from ores like the one existing in Rosia Montana is based on the full cyanide leaching of the mining mass. There are several examples in the world of similar ores that require the application of the cyanide leaching technology in order to economically extract the precious metals. The implementation of the concentration through cyanide leaching in order to recover gold and silver from Rosia Montana gold and silver ore deposit is supported by a detailed testing programme conducted by AMMTEC Limited and AMDEL Limited. The testwork has been planned and supervised by GRD MINPROC Limited, and subsequently the conclusions of the testing programme have been verified and reconfirmed by S.N.C. LAVALIN and AUSENCO. The best practices applied at international and European level have been considered in preparing the cyanide leaching technology for Rosia Montana ore deposit. The technology for the recovery of metals by applying cyanide leaching through the CIL procedure is BAT (Best Available Techniques – BAT) (according to Chpt. 3.1.6.2.2 and Chpt. 5.2 of BREF Guide [1] UE Document on BAT for Management ... in Mining Activities from March 2004).

The cyanide shall be delivered as solid, in ISO tanks specially designed and built. Cyanide shall be dissolved directly in the transport tank in an alkaline solution resulted and re-circulated from a mixture tank. The mixture tank is designed to host the entire capacity of a transport tank. After the contents of a tank are fully dissolved, the cyanide solution shall be transferred from the mixture tank in a high capacity storage tank.

Answer The fine grinded ore consisting of the fraction resulted at the overflow of hydro-cyclones of ball mils is transferred towards the sink of the pump supplying CIL circuit where is mixed with cyanide and suspended slaked lime, required to regulate the value of the pH. Active carbon is added in the CIL tanks to support the leaching process and the adsorption of dissolved metals.

The slurry is undergoing a leaching process in two parallel batteries of 7 CIL tanks, which are provided with agitators. The dimensions of one CIL tank will be D = 18 m x H = 20 m. These tanks have these dimensions so as to provide a sufficient contact time between cyanide solution and, grinded ore and the active carbon. Depending on the needs, sodium cyanide solution is added in no2 and 4 CIL tanks so as to maintain the necessary cyanide concentration within the circuit. The slurry passes the hydro-gravitational cyanide leaching circuit and the carbon advances continuously against the slurry flow with the help of vertical pumps. The advancement time from one tank to another is regulated so as to ensure a gold and silver load onto the carbon raging between 7,000 to 8,000 g/t.

The slurry is mixed with flocculants in the supply basin of the tailings thickener; the flocculants facilitate the settlement of solid fraction. The tailings thickener ensures the increase of solid content in the sediment and also the formation of a supernatant relatively cleared. The supernatant discharged from the tailings thickener shall be directed towards grinding circuit for reuse and to recuperate cyanide.

Page of answer 1 of 5 Pagina 62 din 206 The thickened tailings are pumped towards the cyanide detoxification circuit, based on the SO2/air procedure, where WAD Cyanide concentration shall decrease below the limits accepted by Romanian legislation and by the European Union Directive. The Management of the technological tailings and the detoxification technology are BAT techniques, according to Chpts. 3.1.6.3, 3.1.6.3.2 and 4.3.11.8 (EU Guide, Document on BAT for Management ... in Mining Activities of March 2004). The detoxified tailings shall be pumped towards the tailings management facility.

The cyanide used during processing shall be handled/stored in full compliance with the EU standards and with the provisions of International Cyanide Management Code of Cyanide (ICMC- www.cyanidecode.org ), safely kept within plant site in order to prevent any potential leakage. Cyanide and its compounds shall be subjected to the INCO detoxification procedure considered to be the Best Available Technique (BAT), in accordance with BREF document and the tailings shall be discharged in the Tailings Management Facility in accordance with Governmental Decision no. 856/2008 on the management of waste from extractive industries, which incorporates the provisions of EU Directive 2006/21/CE referring to mining industry waste.

Most of the cyanide shall be recovered within the plant.

Detoxified tailings are the only source of process waste water existing in the Project. The concentrations of the residual cyanide from the tailings slurry will meet the provisions of EU Directive 2006/21/CE on mining wastes that stipulates for a maximum value of 10 ppm CNWAD (weak acid dissociable).

The modelling of the predicted concentrations at the Tailings Management Facility showed that the treated tailings slurry is expected to contain 2 to 7 ppm WAD Cyanides. Through a subsequent degradation, these concentrations shall decrease below the values provided for the standards of surface waters (0.1 mg/l) within 1 to 3 years following the closure. A collateral effect of this treatment is also the removal of many of the metals that may appear in the flow of the technologic used waters.

After decant, the water is reused in the process; within the Tailings Management Facility, during settlement the following process occur: natural degradation/decomposition of cyanides, hydrolyse, volatilization, photo-oxidation, bio-oxidation, complexation/decomplexation, adsorption onto precipitates, dilution due to precipitation etc.

According to the data secured during operation at different mines, variable efficiencies are observed for decucing the cyanide concentrations (from 23-38% to 57-76% for Total Cyanides, and from 21-42% to 71-80% for WAD Cyanides), depending on the season (temperature).

A reduction of 50% has been considered as average for CNt concentration at the Tailings Management Facility during operation. According to the modelling conducted for the degradation/decomposing process, it is possible to even have a reduction of 0.1 mg CNt/l in the first three years following closure.

Most (90%) of the degraded cyanides (average of 50%) is achieved through hydrolyse/volatilization as hydrocyanic acid. The mathematical modelling of the concentration of hydrocyanic acid at the Tailings Management Facility lead to a maximum concentration of 382 µg/m3 against 5,000 µg/m3, a limit of emissions imposed through MAPPM Order no. 462/1993 issued for the approval of Technical Conditions on Atmospheric Protection and of the Methodological Norms on Determining Air Pollutants produced by stationary sources, with its subsequent amendments and alterations.

This area shall benefit from the opportunities created through the development of this mining project that is aimed at the sustainable development of the entire area.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities existing around Rosia Montana Project area to allow them

Page of answer 2 of 5 Pagina 63 din 206 to obtain qualifications for different jobs or skills, both during construction and operations stages.

To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to recourse to dismissals so as to reduce its costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Aside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, orient and control all relevant development issues in an integrant manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) agrees that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by: • An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from

Page of answer 3 of 5 Pagina 64 din 206 Romania

RMGC also cooperates with stakeholders for the initiation of their own business so as to diversify and develop the economic opportunities provided by RMP: • The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Creation of a business centre and incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial spirit of locals so as to be prepared for the sustainable development needs after completion of RMP.

Material Capital Infrastructure – to include buildings, power supply, transport, water supply and waste management: • Income growth for governmental agencies, totalling US$1.75 billion for over 20 years (construction-production-closure activities), which will constitute supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Quarter in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital Includes: health and education: • Construction of a dispensary and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage: • efforts for the development and promotion of the cultural heritage from Roşia Montană, both for locals and for tourism purposes – RMGC is partner in the Partnership for Roşia Montană cultural heritage ([email protected]); • opportunities for the education of the adults and improvement of their skills, through training programs, funds and scholarships, which have the role to increase the employment chances, both direct, with RMGC, as well as indirect – RMGC is partner in the Roşia Montană Program for skills and trades training; • support programs for vulnerable people and groups, and strengthening of the social network, especially in Roşia Montană – RMGC is partner of Roşia Montană Good Neighbor Program which is coordinated by ProRoşia local ([email protected]); • RMGC supports the partnership coordinated by NGOs which work with the youth from the area, for improving and increasing the potential of the community (www.certapuseni.ro).

Page of answer 4 of 5 Pagina 65 din 206 Natural Capital Includes: landscape, biodiversity, water quality, ecosystems: • Measures included in the management plan of RMP and in the Standard Operating Procedures for the prevention of accidents and emergencies management (SOP) shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Rosia Montana; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on having environmental protection measures included in economic activities; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Conduct Code through which all RMP suppliers are required to observe RMGC standards on environmental protection

When the construction of the project will start, all properties around the proposed project will be analized.

Page of answer 5 of 5 Pagina 66 din 206

Item no. 23

Stakeholder Roth Stephanie name

Stakeholder Cluj Napoca (voluntar Alburnus Maior) address Observations - the issue of the insignificant impact on the biodiversity is raised according to the statements of the titleholder. There were presented some studies related to the biodiversity and the impact on the biodiversity. She doesn't agree with the environmental report and the data related to the biodiversity. Later replanting doesn't solve the problem of biodiversity disappearance. Question/ - She talks about the World Bank Directive regarding the resettlement of the population. Comment The resettlement is usually done after the environmental permit is obtained, so that fair negotiation grounds are created. - Carnic Massif - the archaeological discharge certificate was annulled and the protection of the galleries must be taken into consideration. The sentence issued in December 8th, 2008 by the Supreme Court is submitted to the Secretariat. - Orlea Massif - Orlea is now a museum - it needs protection

The impact on biodiversity: the Mining Project was designed, from the beginning, so it complies with the conditions and normative imposed by the national and European legislation in the field of environment protection. The biodiversity assessment requirements provided by the national legislation refers to the assessment of specific riches and ecosystems, and to preservative identification of the species and habitats, aspect approached in detail and appropriate in Chapter 3.1.3 – Flora and fauna, The Environment Report for the amendment of the PUZ, Rosia Montana industrial zone (p. 46-56).

The data obtained from the field studies allow us to conclude that the biodiversity, on the whole, represents a weak attribute in Rosia Montana area. Thus, no endemic, specific, stenobiont, with special significance for bio-layers, local, regional or national, were identified. Also, no unique, rare or preservation priority habits were identified within the impact area of the Project. The impact on the flora and fauna will be represented only at local level – the impact shall not lead to the disappearance of any of the species. Thus, even though certain species included by the Directive 92/43/EEC of May 21st, 1992 (The preservation of the natural habitats and wild flora and fauna), can be found within the perimeter which is going to be impacted by the Project, they don’t meet the criteria for designating this area as being one of preservative importance, Answer because the little populations of these species show a low preservation value of the impact zone. This fact was, otherwise, confirmed by the rejection of the proposal for designating the area as SPA (species protection area), as well as through the rejection, on grounds of non- substantiation, of the proposal to designate it as SCI (sites of communitarian importance) – issued by the Technical experts commission convened for the assessment of the Natura 2000 proposals.

In relation to the ownership rights for the blocks of land needed for the Mining Project, RMGC prioritizes the acquirement of the land based on free-will transactions between the seller and the buyer. The resettlement and relocation process for the properties is carried out on the grounds of the Relocation and Resettlement Action Plan, document issued in accordance with the Provisions of the Operational Directive regarding the involuntary resettlement (OD 4.30) of the World Bank Group and Equator Principles, and which was subject to public consultations with the community.

The statement of the participant to the public debates regarding the obligation of obtaining the environment permit before starting the properties acquisition process is wrong. There isn’t any such provision in the World Bank Directive OD 4.30 and, moreover this document specifically

Page of answer 1 of 2 Pagina 67 din 206 mentions that the resettlement is a matter which has to be taken into consideration from the first phase of the project [i.e.,“resettlement […] should be dealt with from the earliest stages of project preparation”] and that the resettlement plan should be implemented along with the environmental assessment [i.e., “The resettlement plan must be developed in coordination with the EA” (environmental assessment)]

In relation to Carnic Area, we mention that all preventive archaeological researches carried out in Rosia Montana, between 2000 and 2006, were made within a complex research program “Alburnus Maior Research National Program”; the permits for preventive archaeological diggings were obtained in accordance with the legal provisions. The archaeological research was coordinated, from scientific stand point, by the Romania National Museum of History, and it involved 21 national and 3 foreign expert institutions. All researches were conducted according to the legal provisions in force; RMGC provided – according to the law – the financial resources required for the assessment and study of the archeological vestiges. In relation to the annulment of the Archaeological Discharge Certificate no. 4/2004 for Carnic area – underground, RMGC will apply, in due time, for a new certificate needed to obtain the construction permit. The application will be based on a new documentation which will take into consideration and fix all the gaps identified by the Court as reasons for annulling the Certificate 4/2004. This fact doesn’t hinder the discussion and approval of the PUZ industrial zone – the two matters (the approval of the urbanism documentation and archaeological discharge) are different legal requirements, which don’t impose conditions to one another.

In relation to Orlea Massif, we mention that, according to the List of Historical Monuments, published in the Official Gazette issue no. 646 bis, of July 16th 2007, the future industrial development zone from Orlea Massif includes two archaeological sites classified as historical monuments, namely – the Roman settlement from Alburnus Maior, Orlea area (code LMI AB-I-m- A-00065.01) and the Roman mine from Alburnus Maior, Orlea area (AB-I-m-A-00065.02). The surface preventive archaeological works for Orlea area, corroborated with the mining archaeological research from Orlea – Ţarina section (underground) are forecasted to take place in future, as disclosed through the EIA Report, chapter „Baseline conditions of the cultural heritage”, vol. 16, p. 43 and to complete in 2012, and the plan of developing the pit in Orlea Massif can happen only after conducting these works. In this regard, RMGC committed to finance a program of preventive archaeological research developed by qualified specialists, so it could then decide if to apply or not the procedure for archaeological discharge.

In accordance with the provisions of the Law 422/2001 regarding the historical monuments, it is possible to apply the declassification procedure within the context of archaeological discharge for archaeological sites, on the grounds of endorsement issued by the National Commission of Archaeology (Ministry of Culture, Cults and National Patrimony). By law, the archaeological discharge is a procedure which confirms the fact that a block of land where archaeological patrimony was identified may be used for current human activities (GO 43/2000, Art. 5, paragraph (2)).

Thus, the construction activities involved by the development of the Project within Orlea area, will not be initiated before the archaeological research is complete; this must be carried out in accordance with the national legal provisions and international recommendations and practices. RMGC plans to mine the gold-silver ore from Orlea Massif in the second phase of the Project’s development.

Page of answer 2 of 2 Pagina 68 din 206

Item no. 24

Stakeholder Jurcă Andrei name

Stakeholder ONG Pro Roşia Montană address Observations - the public debate must belong to the community. He thinks that some participants' attitude is indecent. The Project is very big, discussed and has a certain impact on the environment. I read the documentation of the Project, I studied it. I'm a doctor in Rosia Montana, Question/ the president of the Pro Rosia Montana NGO whose members include over 80% of the people of Comment Rosia Montana. The majority of these people need jobs. - He salutes the presence of the Hungary representatives and mentions that the Romanian participants weren't allowed to take the floor during the public debates from Hungary. - The people want this investment. Mention about the world economic crash.

This area shall benefit from the opportunities created through the development of this mining project that is aimed at the sustainable development of the entire area.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities existing around Roşia Montană Project area to allow them to obtain qualifications for different jobs or skills, both during construction and operations stages.

To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to recourse to dismissals so as to reduce its costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it. Answer If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Aside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, orient and control all relevant development issues in an integrant manner and through the participation of all stakeholders.

Page of answer 1 of 3 Pagina 69 din 206

Roşia Montană Gold Corporation (RMGC) agrees that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by: • An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own business so as to diversify and develop the economic opportunities provided by RMP: • The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Creation of a business centre and incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial spirit of locals so as to be prepared for the sustainable development needs after completion of RMP.

Material Capital Infrastructure – to include buildings, power supply, transport, water supply and waste management: • Income growth for governmental agencies, totalling US$1.75 billion for over 20 years (construction-production-closure activities), which will constitute supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Quarter in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital Includes: health and education: • Construction of a dispensary and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community

Page of answer 2 of 3 Pagina 70 din 206 through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage: • efforts for the development and promotion of the cultural heritage from Roşia Montană, both for locals and for tourism purposes – RMGC is partner in the Partnership for Roşia Montană cultural heritage ([email protected]); • opportunities for the education of the adults and improvement of their skills, through training programs, funds and scholarships, which have the role to increase the employment chances, both direct, with RMGC, as well as indirect – RMGC is partner in the Roşia Montană Program for skills and trades training; • support programs for vulnerable people and groups, and strengthening of the social network, especially in Roşia Montană – RMGC is partner of Roşia Montană Good Neighbor Program which is coordinated by ProRoşia local ([email protected]); • RMGC supports the partnership coordinated by NGOs which work with the youth from the area, for improving and increasing the potential of the community (www.certapuseni.ro).

Natural Capital Includes: landscape, biodiversity, water quality, ecosystems: • Measures included in the management plan of RMP and in the Standard Operating Procedures for the prevention of accidents and emergencies management (SOP) shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on having environmental protection measures included in economic activities; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Conduct Code through which all RMP suppliers are required to observe RMGC standards on environmental protection

Page of answer 3 of 3 Pagina 71 din 206

Item no. 25

Stakeholder Cosma Ştefan name

Stakeholder Roşia Montană address Observations - what will happen with the people who don't want to leave and sell? Question/ - I want to start a business here - I can't, because the area is industrial. No approval on Comment projects is granted due to the fact that this is an industrial zone. Those who sold their property can't be considered as being part of the community. He doesn't agree with the plan / project.

The properties acquisition process is developed in accordance with the national legislation and the ownership right; in addition, the decision to sell the property and start a new life in a new home (sometimes, a new place) is a difficult decision. Therefore, RMGC approached this matter with full responsibility, providing enough time for reviewing all the options and taking this decision knowing all the details. The families affected by this process received support before and after the sale of the property from the project’s area. The acquisition of 794 households was carried out on the grounds of the free-will principle, for both the seller and purchaser. When RMGC will resume the acquisition of the properties, same principles will be followed so it grants an equal opportunity to all owners.

Also, we would like to have a permanent dialogue with all the families in the area where the project is proposed to be developed, to inform and consult these families in relation to all the options and benefits, and to find out about their concerns.

The method selected for establishing the value of the properties in Roşia Montană is compliant with the recommendations of the World Bank and is based on the “replacing value” within the same conditions. For this purpose, the replacing value was established on the grounds of real estate market assessment from 14 towns on a radius of 250km around Roşia Montană communa, and calculating an average of the observed replacing costs. Cluj town, even though located within the assessed radius, comes first on the list of places taken into consideration. If it is expected that the replacing value be reported to the real estate market from Cluj, then Answer establishing an average would not make any sense. Following the same logic, it wouldn’t be fair and correct that the replacing value to be set in accordance with the prices recorded by a top place in the region – and that is Zlatna. It was considered that the fairest method to establish the “replacing value” is to calculate an average of the prices recorded by those 14 real estate markets. The current prices for various types of house and land were established giving consideration to the level of prices in Alba Iulia town. The prices were reviewed in the past 6 months, twice, in accordance with the results of the assessment mentioned above.

RMGC Project needs an area of 1054 ha from the area of Roşia Montană communa, which has 4200 ha, thus representing approx. 25 %. The condition of the infrastructure is precarious all over Roşia Montană administrative territory. The statement that RMGC contributed to the blockage of other investments is unsubstantiated.

Roşia Montană communa is made of 16 villages. Currently, Rosia Montana Industrial Zone covers only 25% of this territory, so that only 4 villages are impacted by the proposed mining activities of the Project initiated by S.C. Roşia Montană Gold Corporation S.A. (RMGC). Due to the fact that only mining works took place within this area in the past, this area never had farms or other activities besides industrial functions.

Regarding the majority of the land in Roşia Montană communa, located outside the mining perimeter (75%), we would like to mention that the functions allowed to develop in these areas are multiple and are not, in any way, precluded by the mining project proposed by RMGC.

Page of answer 1 of 2 Pagina 72 din 206 Also, please note that there are legal imperative provisions which restrain the development of other projects than those aimed for the mining and processing of natural resources for the areas where these were identified. These legal provisions include: • Article 41(2) of the Mining Law no. 85/2003 ”county councils and local councils will amend and / or update the existing territory arrangement plans and the general urbanism plans for allowing all necessary leased mining works to develop”; • Article 6(1) of the Governmental Decision no. 525/1996 republished in November 11th, 2002, for the approval of the General Urbanism Regulations („GD no. 525/1996”) ”the permitting of definitive constructions, other than industrial constructions, required for the mining and processing of the resources from the areas identified according to the law, which contain proved underground resources, is banned”; • Article 4.4. of the Urbanism Local Regulations of Roşia Montană communa, related to the General Urbanism Plan of 2002,” the permitting of definitive constructions, other than industrial constructions, required for the mining and processing of the resources from the areas identified according to the law, which contain proved underground resources, is banned”.

Consequently, you are kindly asked to take into consideration that the legal provisions mentioned above have an imperative character and are applicable to any similar project, developed by public and/or private entities.

Page of answer 2 of 2 Pagina 73 din 206

Item no. 26

Stakeholder Mera Vlad name

Stakeholder Roşia Montană address - we can build something together, in a civilized manner. Question/ Comment This area shall benefit from the opportunities created through the development of this mining project that is aimed at the sustainable development of the entire area.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities existing around Rosia Montana Project area to allow them to obtain qualifications for different jobs or skills, both during construction and operations stages.

To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to recourse to dismissals so as to reduce its costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs Answer available during construction and operation stages to be filled by labour force from the local community.

Aside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, orient and control all relevant development issues in an integrant manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) agrees that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

Page of answer 1 of 3 Pagina 74 din 206 The five key domains of the sustainable development

Financial Capital Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by: • An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own business so as to diversify and develop the economic opportunities provided by RMP: • The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Creation of a business centre and incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial spirit of locals so as to be prepared for the sustainable development needs after completion of RMP.

Material Capital Infrastructure – to include buildings, power supply, transport, water supply and waste management: • Income growth for governmental agencies, totalling US$1.75 billion for over 20 years (construction-production-closure activities), which will constitute supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Quarter in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital Includes: health and education: • Construction of a dispensary and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for

Page of answer 2 of 3 Pagina 75 din 206 instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage: • efforts for the development and promotion of the cultural heritage from Roşia Montană, both for locals and for tourism purposes – RMGC is partner in the Partnership for Roşia Montană cultural heritage ([email protected]); • opportunities for the education of the adults and improvement of their skills, through training programs, funds and scholarships, which have the role to increase the employment chances, both direct, with RMGC, as well as indirect – RMGC is partner in the Roşia Montană Program for skills and trades training; • support programs for vulnerable people and groups, and strengthening of the social network, especially in Roşia Montană – RMGC is partner of Roşia Montană Good Neighbor Program which is coordinated by ProRoşia local ([email protected]); • RMGC supports the partnership coordinated by NGOs which work with the youth from the area, for improving and increasing the potential of the community (www.certapuseni.ro).

Natural Capital Includes: landscape, biodiversity, water quality, ecosystems: • Measures included in the management plan of RMP and in the Standard Operating Procedures for the prevention of accidents and emergencies management (SOP) shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Rosia Montana; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on having environmental protection measures included in economic activities; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Conduct Code through which all RMP suppliers are required to observe RMGC standards on environmental protection.

Page of answer 3 of 3 Pagina 76 din 206

Item no. 27

Stakeholder Andreica Lucian name

Stakeholder Sohodol (primar) address - how many managers does RMGC have and how many of them are locals from Apuseni Mountains area? - he thinks that few people of the area will benefit from the Project. He considers the involvement of the locals in the management of the company, so they can take over the responsibilities for the next phases. - He requests the point of view of the Romanian Academy, the superior scientific Question/ competent forum Comment - In Sohodol, many skilled people worked in Rosia. Currently, there is only one employee of RMGC from Sohodol. The accident from Baia Mare is brought into discussion, and is correlated with a potential accident of the tailings dam. - He wants this investment and he's not against it, but from here to our destruction is not that much.

RMGC is managed by a Managing Director, one Environmental Vice President, one Legal Vice President and Managers of the following departments: geology, community relations, administration, and sustainable development.

The most recent position of the Romanian Academy regarding the Roşia Montană project was made public on February 27, 2006, almost three months before the submission of the report to the Environmental Impact Assessment Study to the Ministry of Environment and Water Management.

RMGC made significant changes to the project design, notably a reduction in the size of several proposed pits as well as enhancing sustainable development activities, and a stronger commitment to preservation of cultural patrimony including a reduced impact on local churches, in response to stakeholder consultations, including with members of the Academy, before submission of the EIA.

Thus the position does not reflect changes to project design or an analysis of the EIA that was actually submitted to the Ministry. Answer We would be happy to meet with the Academy to answer any questions regarding the project.

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary

Page of answer 1 of 6 Pagina 77 din 206 capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local

Page of answer 2 of 6 Pagina 78 din 206 and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating

Page of answer 3 of 6 Pagina 79 din 206 Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

Our project in Roşia Montană bears no comparison to the mine in Baia Mare. From design and facility management, financial assurance, public reporting, stakeholder involvement, to verification procedures and compliance – all of which are followed to the highest standards in our project – the two projects are vastly different. And agricultural development on the tailings management facility surface, which by most standards is hazardous, is not advisable. Better alternatives are touristic enterprises, such as golf courses or hiking trails.

In fact, the Roşia Montană project is subject to the latest strict standards because of the Baia Mare accident. The Romanian Government, in our Terms of Reference, requested that we follow the new European Directive on Waste Management even before it became law in Europe or România.

The Baia Mare accident has fundamentally changed the rules and regulations in Europe for the production, transportation and use of cyanide. The new stricter standards (highest in world) make it impossible for any new mining project with a design and operating procedures similar to the Baia Mare mine, to ever be permitted in Europe.

The Environmental Impact Assessment (EIA) study we submitted in 2006 is the first in România to be EU compliant and is designed so that not a single exemption from existing or planned laws is necessary. To illustrate our commitment to high standards, wherever Romanian and EU requirements differ, Gabriel has chosen to abide by the stricter of the two. In addition, while existing gold mines will have as long as 10 years to come into compliance with stricter regulatory standards, our Roşia Montană Project will meet these standards from the first day of operation.

A large part of the changes since the Baia Mare accident is the introduction of the Cyanide Management Code, to which Gabriel/RMGC is a signatory, and which stipulate strict guidelines for the production, transportation and use of cyanide. The Code also includes requirements related to financial assurance, accident prevention, emergency response, training, public reporting, stakeholder involvement and verification procedures. The International Cyanide Management Code can be referenced at www.cyanidecode.org.

Specifically, the Roşia Montană Project (“RMP”) differs from Baia Mare on every key indicator – such as cyanide detoxification in the process plant, design and construction of the Tailings Management Facility (TMF) and embankments, management of the facility itself, financial assurance, public reporting, stakeholder involvement and verification procedures The Roşia Montană Project is in no way comparable to Baia Mare.

The cyanide used in the project will be subject to a cyanide destruction process and residual cyanide deposited with the process tailings in the Tailings Management Facility (“TMF”) will degrade rapidly to levels well below maximum regulatory levels. Because detoxification will take place before the tailings are deposited to the TMF, they will contain very low concentrations of cyanide (5-7 ppm) which is well below the regulatory limit of 10 ppm recently adopted in the EU Mine Waste Directive. This system of use and disposal of cyanide in gold mining is classified as Best Available Techniques (BAT) by the EU.

This is a key difference with Baia Mare: Baia Mare did not have a cyanide destruction mechanism (detoxification process) in the process plant, as the RMP has. As a result, the concentration of cyanide in the tailings disposed in the TMF at Baia Mare was between 120-400

Page of answer 4 of 6 Pagina 80 din 206 ppm of cyanide. As a result, in the unlikely event of a spillage, the quantity of cyanide in the water would be a small fraction of what was experienced at Baia Mare.

The proposed dam at the Tailings Management Facility (TMF) and the secondary dam at the catchment basin are rigorously designed to exceed Romanian and international guidelines, to allow for significant rainfall events and prevent dam failure due to overtopping and any associated cyanide discharge, surface or groundwater pollution. Baia Mare was not designed to the same high standards and did not have the requisite capacity to withstand the extreme precipitation event in 2000.

In order to ensure sufficient capacity to avoid overtopping, the elevation of each stage of the TMF through the life of the project is determined as the sum of the design volume required to: (1) store process water and tailings for the maximum normal operation volume of tailings and the average decant pond volume; (2) store run-off resulting from two PMP storms and, (3) Provide a tailings beach and additional freeboard for wave protection to the tailings volume at each stage during operations; a conservative freeboard criterion is based on the PMF storage plus 1 meter of wave run-up.

The TMF has been designed to meet the more stringent PMP event. Furthermore, in order to ensure that the TMF can store a full PMF volume at all times, it is actually designed to safely hold the flood waters from two consecutive PMP events. The Roşia Montană TMF is therefore designed to hold a total flood volume over four times greater than the Romanian government guidelines and 10 times more than the rainfall that was recorded during the Baia Mare dam failure. An emergency spillway for the dam will be constructed in the unlikely event that pumps fail due to malfunction or power interruption at the same time as the second PMP event. The TMF design therefore very significantly exceeds required standards for safety. This has been done to ensure that the risks involved in using Corna valley for tailings storage are well below what is considered safe in every day life.

The dam of the TMF for RMP will be built by using the centerline method, by using borrowed rockfill and waste rock – which is BAT for the industry. The EIA describes how the dam will be built with solid rock materials, designed and engineered by MWH, one of the leading dam designers in the world and approved by Romanian certified experts. Prior to operation, the dam must be certified for operations by the National Commission for Dams Safety (CONSIB). RMGC has utilized the world’s foremost experts in these areas to ensure the safety of the project’s workers and the surrounding communities. Baia Mare was built of coarse tailings materials not rockfill and therefore was not able to handle the additional wait of the extreme precipitation event in 2000.

The TMF will have a spillway above the starter dam, and a system of under-drains, granular filter zones and pumps – as per BAT – to collect, control and monitor any seepage. Specifically, the tailings ponds and tailings dam have been designed to the highest standards to prevent pollution of groundwater, and to continuously monitor the groundwater and extract any seepage detected – a system verified by hydro-geologic studies. Specifically, the design features include an engineered soil liner system within the TMF basin to meet a permeability specification of 1x10-6 cm/sec, a cut-off wall within the foundation of the starter dam to control seepage, a low permeability core for the starter dam to control seepage, and a seepage collection dam and pond below the toe of the tailings dam to collect and contain any seepage that does extend beyond the dam centerline.

In terms of management, Baia Mare was rated a Category C facility – requiring no special surveillance and monitoring. Roşia Montană Project, however, is Category A, meaning that a full EIA detailing baseline conditions, project impacts and mitigation measures, is required before receipt of permits, as well as future monitoring and reporting requirements.

Finally, Baia Mare had no Cyanide Management Plan in place. By comparison, the Roşia Montană Project has a Cyanide Management Plan compliant with the International Cyanide Management Code (ICMC) – which is BAT for today’s projects.

Page of answer 5 of 6 Pagina 81 din 206

Page of answer 6 of 6 Pagina 82 din 206

Item no. 28

Stakeholder Bobar Dumitru name

Stakeholder Câmpeni address Observations - We are not against the investments in the area, but not at any price. How many residents of Campeni will be employed at Rosia Montana? - he's unhappy with the uncertain answer provided by the company - he raises the problem of the radioactive dust cloud which will occur during the blasting operations conducted in the pits. In a similar way, the cyanide from the dam will raise. The effect will impact the area (acidic and cyanide rains) - there must be considered the impact on the population's health (congenital malformations etc). What will the company do to help the people facing these problems caused by the company? Question/ - We brought 7 academicians to Rosia Montana area, who expressed their opinion that Comment this project may generate a negative impact on the environment. He thinks that the point of view expressed by the Romanian Academy is important, and this is against the project. - The benefits of the Romanian State, as explained, are of 49%, but the mining royalties are 2%, the only income of the State - There are similar examples presented from abroad where, after starting the mining projects, the companies went broke, and the problems remained. This relates to future impact. - This money made available for the Romanian authorities - who's going to manage it? Is this amount enough to rehabilitate the environment after you leave?

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary Answer capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments

Page of answer 1 of 8 Pagina 83 din 206 generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be

Page of answer 2 of 8 Pagina 84 din 206 transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

Within Roşia Montană area there are no radioactive ore deposits. According to the measurements performed by the National Research – Development Institute for Environment

Page of answer 3 of 8 Pagina 85 din 206 Protection – ICPM Bucharest, the radioactivity of the environment around the Cetate and Cârnic open pits from Roşia Montană is within the natural background limits.

As for the dust generated by the activities proposed by Roşia Montană Project we made the following mentions:

• The dust will have a composition similar to that one emitted into atmosphere in over 35 years’ time as a result of the mining in Cetate and Cârnic open pits and processing in the old processing plant. This affirmation relies on the fact that the Project proposes to continue the mining in Cetate and Cârnic open pits and to open Orlea and Jig new open pits of which rocks have a composition similar to those from Cetate and Cârnic open pits; • The dust emitted from the old mining activity does not contain radioactive material above natural background limits and therefore it is not anticipated that future activity will produce dust containing radioactive materials; • The radioactivity of the dust emitted in future, will be comparable with that one registered during the last 35 years, a level situated within the natural background limits; • Roşia Montană Project provides the implementation of a rigorous air quality management plan, including a monitoring programme?, so that the concentration of total particles in suspension and of those inhaled by people from the surrounding localities will be maintained far below the limit values for population’s health protection; • According to dispersion maps (obtained through mathematical modeling) for the total particles in suspension (TSP) and particles with equivalent aerodynamic diameters below 10 μm (PM10) it is observed that the concentration decrease is rapid depending on the distance from source, so that the localities outside the industrial site will have concentrations 4 – 20 times lower than limit values on distances from 0 km to 2.5 / 4 km towards the site perimeter. At higher distances, concentrations will be over 20 times lower than limit values.

Details regarding the aspects referring to the dust generated by mining activities: Environmental Impact Assessment (EIA) report, Vol. 3 – Air Quality Baseline Study, Vol.12 – Chapter 4.2.

The term ‘cyanide’ refers to a singular charged anion with a carbon atom triple-bonded to a nitrogen atom. The most toxic form is free cyanide, which includes the anion itself and hydrogen cyanide (HCN), in gas or liquid form.

We would like to stress the fact that the cyanide is present in the tailings pond in the form of cyanide ions in aqueous solution and in the form of various soluble and insoluble complex cyanides.

Hydrogen cyanide HCN is a colorless toxic liquid with the boiling point at 25.79° C. HCN is miscible with water in any proportion, and soluble in ether. HCN spontaneously polymerizes if not absolutely pure or stabilized. HCN is a very weak acid, with a ionization constant in the same order of magnitude as natural amino-acids.

Sodium Cyanide NaCN is a white, crystalline solid, soluble in water (48 g/100 ml at 10°C), with a boiling point (extrapolated) at 1,500 °C.

In aqueous solutions, at 9.3 -9.5 pH CN and HCN exist in equal quantities. At pH 11, more than 99% of the cyanide will exist in the solution in the form of CN, while at pH 7, more than 99% of the cyanide will be present in the form of HCN.

One of the most important reactions affecting the free cyanide concentration in aqueous solutions is HCN volatilization, of key importance with regard to accident hazard. Free cyanide is lost in most surface waters because the pH of such waters is usually less than 8, therefore HCN will volatilize and disperse. The amount of cyanide lost in this way will increase with the decrease of pH and the temperature increase. As a final observation, we note that cyanide leaching is used in gold mines in tropical climates where temperatures routinely reach 40° C, without adverse effects.

Linking hydrogen cyanide emissions with the occurrence of acid rains is completely groundless considering that HCN is a very weak acid, (with a ionization constant (pKa= 9.2-9.3) in the

Page of answer 4 of 8 Pagina 86 din 206 same order of magnitude as natural amino-acids.

Acid rain, of course, is caused by entirely different industrial processes than those that will be used in the Roşia Montană Project, involving sulphur dioxide emissions. Cyanide cannot structurally exist in „acid rain.”

Cyanide rains” cannot possibly happen for the following reasons: • the handling of Sodium cyanide, beginning with the unloading stage and until the tailings’ deposition in the TMF, will involve only liquid sodium cyanide, in the form of alkaline solution with a high pH (> 10.5-11), with different sodium cyanide concentrations. The alkaline nature of the solutions is meant to maintain cyanide in the form of cyanide ions (CN-) and to prevent the formation of hydrogen cyanide HCN. • HCN only, and not free cyanide will form as a result of the volatilization of the cyanide present in the solution. • handling and storage of sodium cyanide solutions will involve only closed circuits. CIL tanks, DETOX tanks and the tailings thickener, as well as the tailings pond are the only areas prone to the formation and volatilization of HCN (with little chances for HCN to be released in the atmosphere). • HCN emissions on the surface area of the aforementioned tanks, as well as on the tailings pond’s surface can occur as a result of the pH decrease in the solutions’ surface area ( which can favor the forming of HCN) • cyanide concentrations in the solutions used will decrease from approx. 300 mg/l in the CIL tanks, to approx. 7 mg/l (less than 10 mg/l WAD CN) when discharged in the TMF. Cyanide concentrations are drastically reduced before discharge due to the treatment of the solution in the detoxification circuit. • based on professional knowledge regarding cyanide chemistry and on previous experience from similar activities, the following potential HCN air emissions have been estimated to occur: 6 t/year from the CIL tanks, 13 t/year from the tailings’ thickener and 30 t/year (22.4 t or 17mg/h/ m2 in the summer period and 7.6 t or 11.6 mg/h/ m2 in the winter period) from the the tailings pond’s surface. That means that the total daily HCN emission is approx. 134.2 Kg. • HCN air emissions undergo chemical reactions in the lower layers of the atmosphere, resulting in the formation of ammonia and carbon oxides. • mathematic models suggest that the highest concentrations of HCN in the air will be at ground level, in the operations area, over the tailings pond and near the plant site (assuming that HCN does not break down in the atmosphere). The maximum average concentration was estimated to be 382 µg/m3 per hour. • The maximum HCN air concentrations will be 2.6 times lower than the maximum allowed concentrations under the Romanian occupational health legislation. • HCN concentrations in the populated areas located near the operations area will measure 4 – 80 μg/m3, that is more than 12.5 times lower than the maximum allowed concentrations under the Romanian occupational health legislation (the EU and national legislation on air quality does not provide for maximum allowable concentrations with respect to the protection of the population’s health). • HCN uptake in precipitation (water vapors and rain drops) is a very minor component of HCN fate in the atmosphere as, at partially reduced pressure, (characteristic for the gases in the atmosphere) HCN is not very soluble in water, and rainout does not effectively reduce atmospheric HCN concentrations (Mudder, et al., 2001, Cicerone şi Zellner, 1983). • It is unlikely that HCN concentrations in rainfall measured in and around the Roşia Montană Project area be significantly higher than base values (0.2 ppm)

Hazardous substances considered within the EIA to be a risk (including cyanides) have been assessed according to the concentrations that are predicted to be present as a result of the proposed mining activities. With regard to human health risks predictions made as part of the risk assessment have indicated no harmful effects [1] in relation to the concentrations of these substances within the environment if the concentrations in question are predicted to be below the permissible maximum concentrations, as it was estimated in the EIA.

The EIA process has attempted to establish an open dialogue with all concerned stakeholders to

Page of answer 5 of 8 Pagina 87 din 206 discuss the technical merits of the project and the specific technical design details. Public meeting have been held throughout Romania in an attempt to understand concerns regarding the project and to communicate the specific details of designs. As part of those efforts, RMGC has communicated that human safety is ensured by a global safety management system, in accordance with the international standards ISO, EU Directives Seveso II and Seveso III on the control of major accident hazards involving dangerous substances, the EU Directive on the management of waste from extractive industries and the International Cyanide Management Code. The Project includes essential elements, specific to its development.

The most recent position of the Romanian Academy regarding the Roşia Montană project was made public on February 27, 2006, almost three months before the submission of the report to the Environmental Impact Assessment Study to the Ministry of Environment and Water Management.

Thus the position does not reflect an analysis of the EIA that was actually submitted to the Ministry.

RMGC had previously changed various parts of the proposal, notably a reduction in the size of several proposed pits as well as enhancing sustainable development activities, and a stronger commitment to preservation of cultural patrimony including a reduced impact on local churches, in response to stakeholder consultations, including with members of the Academy, before submission of the EIA. RMGC would be happy to meet with the Academy to answer any questions regarding the project.

The partnership between Gabriel Resources and Regia Autonoma a Cuprului Deva (currently, CNCAF Minvest SA) has been established based on Law no. 15/1990 on the reorganization of the state owned companies as public corporations and trade companies, published in the Official Gazette, Section I, no. 98/08.08.1990, as subsequently amended and supplemented. Art. 35 of this law provides the possibility of the regies autonomous to enter into partnerships with legal third parties, Romanian or foreign, for the purpose of setting up new trading companies.

Roşia Montană Gold Corporation SA was set up in 1997, according to the legal provisions in force as at that time, the setting up being made by observing all the conditions imposed by company Law no. 31/1990 and Trade Register Law no. 26/1990, in regard of the setting up of the joint stock companies with mixed capital.

We underline that the Articles of Associations of Roşia Montană Gold Corporation SA, representing the result of the parties agreement regarding the terms and conditions under which the partnership between the Romanian state and investor takes place represents a public document, being included in the category of documents which, as per Law no. 26/1990 on the Trade Register, are published in the Romanian Official Gazette and for which the Trade Register is obliged to issue, on the expense of the persons submitting a request, certified copies.

We also specify that the establishing of the shareholders’ quotas to the benefits and losses of Roşia Montană Gold Corporation SA has been made by considering their contribution quota to the company’s share capital. The current percentage of 80% for Gabriel Resources Ltd. and of 19.31% for CNCAF Minvest SA resulted from the initial contribution and the subsequent contributions of the shareholders to the company’s share capital, in consideration also of Gabriel Resources Ltd. advancing all expenses and costs related to the development-exploitation and permitting of the Roşia Montană Mining Project.

The activities of closure and ecological rehabilitation in Roşia Montană include the following:

• Topsoil cover of the waste dumps, as long as they are not used for backfilling the pits; • Backfilling of the pits, excepting Cetate pit which will be flooded and converted into a lake; • Topsoil cover of the TMF and of the tailings dam; • Decommissioning of the production plants not longer in use and the ecological reconstruction of the decommissioned areas; • Water treatment though semi-passive systems (including traditional treatment systems as back up) until the level of the indicators for all effluents reach the standard and don’t

Page of answer 6 of 8 Pagina 88 din 206 require continuation of the treatment process; • Maintenance of the vegetation, prevention of the erosion and monitoring of the entire site, until RMGC demonstrates that all rehabilitation objectives were made in a sustainable manner.

In accordance with the Mining Law from Romania and the EU Directive regarding the mining waste, there will be a financial guarantee for the environmental rehabilitation set up (GFRM) before creating any debt. GFRM is established by the Mining Law (no. 85/2003) and by the Guidelines for applying the Mining Law issued by the National Agency for Mineral Resources (no. 1208/2003).

In accordance with the national legislation, there are two separate and different GFRM.

The first one, which is updated every year, focuses on covering the costs forecasted for the ecological rehabilitation related to the operation of the mining objective during the coming year. These costs are minimum 1.5% per year from the total costs, reflecting the annual scheduled works.

The second guarantee, which is also update every year, establishes the costs forecasted for an eventual closure of the Roşia Montană mine. The value of the GFRM aimed for covering the costs related to final environment rehabilitation is calculated as annual quota from the value of the environment rehabilitation works forecasted within the monitoring program, post-closure. This program is part of the Technical Program for the mine closure, a document which has to be approved by the National Agency for Mineral Resources ("ANRM”).

Each GFRM will comply with the detail rules issued by the World Bank and the International Council for Mining and Metals.

There are, also, two Directives of the EU which relate to the GFRM: The Directive for mining waste („DSM”) and Directive for environment responsibility („DRM”).

The Scope of the Mining Waste Directive is to ensure the coverage for 1) all obligations resulting from the permit issued for the removal of the waste generated by mining works and 2) all costs related to the rehabilitation of the land affected by the waste storage. The Directive for the environment responsibility sets up the remediation activities and the measures which must be implemented by the environment authorities in case of an ecological accident due to mining operators, for the purpose of ensuring that the operators have available the appropriate financial resources for the ecological remediation works.

RMGC will comply with the legal provisions regarding the financial guarantees, which will be adopted in future, by the authorities, on the grounds of Artciel 33 of the Government Emergency Ordinance no. 2004/35/CE on the environment responsibility, the prevention and rehabilitation of the damage brought to the environment and Article 50 of the Government Decision no. 856/2008 implementing the Directive 2006/21/CE on the mine waste management and amending of the Directive 2004/35/CE.

The current closure costs for Roşia Montană are 35 million USD, calculated for the mine operation life of 16 years. The annual updates will be established by independent experts, in liaison with ANRM, in the quality of competent governmental authority in the field of mining operations. The updates ensure that, in the case of very unlikely early closure of the project, and at any time, GFRM always reflects the costs needed for the ecological rehabilitation. (These annual updates will result in an estimate value which exceeds the current closure cost of 135 million USD, because the usual operation of the mine includes certain ecological rehabilitation works).

The annual updates include four viable elements: • Changes brought to the project and which affect the objectives of ecological rehabilitation; • Changes of the legislation in Romania, including the implementation of the UE Directives; • New technologies which improve the methods and practices for ecological rehabilitation;

Page of answer 7 of 8 Pagina 89 din 206 • Changes of the price for certain key products and services needed for the ecological rehabilitation.

Once these updates are completed, the new estimate costs for closure works will be included in the financial statements of RMGC and will be disclosed.

According to the law, several financial tools are available for ensuring that RMGC is capable to cover all the closure costs, so that the Romanian Authorities don’t have any financial responsibility concerning the environment rehabilitation due to Roşia Montană Project.

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Item no. 29

Stakeholder Mateş Marcel name

Stakeholder Câmpeni address Observations - which are the most demanded jobs in case the Project starts, and the employment is Question/ done from the local workforce market? Comment - Will the Aries river and the springs be affected by the new mine?

During the 16 years of operations, the estimate is that Roşia Montană Project will require 881 direct jobs. It is expected that the majority of these jobs is going to be occupied by residents of the impact area of the Project.

Please see below a brief listing of the fields and related jobs.

Management:

• General Manager • Technical Director • Mine Manager • Operations Manager • Administration assistants

Processing plant / Tailings dam

• Metallurgist • Plant shift supervisor • Metallurgy and laboratory technicians • Sundry multi-skilled labour - Control room Answer - Crushing - Grinding - CIL - Gold room - Tailings - Reagents - Water treatment plant • Chemistry laboratory - Chemist - Assayers - Samplers (workers)

Mining activities

• Shift supervisors • Drilling and blasting foremen • Head of mining • Dispatch operators • Chiefs of Training • Head of statistic cost control • Loading operators • Truck drivers

Page of answer 1 of 6 Pagina 91 din 206 • Operators of additional equipment • Drilling operators

Maintenance

• Maintenance foreman • Electrical engineers • Engine drivers • Multi-functional equipment technicians • Maintenance planners • Electricians • Mechanics • Welders • Equipment technicians • Carpenters • Clerk

Technical services

• Geologists • Mining engineers • Mining planners • Geo-technical engineers • Technician • Dispatch engineer • Surveyors

Administration and support services

• Finance / accounting / IT • Supply (purchasing, plan, warehouse) • Human resources • MPMS (environment, occupational health and safety) • Patrimony (archaeologist, specialist, workers) • Community relations • Legal department • Various contract works, such as cleaning, security, transportation, etc.

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the

Page of answer 2 of 6 Pagina 92 din 206 citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Page of answer 3 of 6 Pagina 93 din 206

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the

Page of answer 4 of 6 Pagina 94 din 206 business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

The results of the environment assessment conducted on the potential remaining effects (after implementing the prevention/mitigation measures) of the Plan, including the transboundary impact, were expressed in a synthetic manner, into six impact categories which enabled us to identify the significant effects. The main results which are outlined by the quantified potential effects’ assessment of the Mining Project, subject of the assessed Plan, on each relevant environment aspect/factor, are described below:

• The population – significant positive impact, generated by the Project’s provisions of this major investment in relation to the improvement of the social and economic conditions of the community on short, medium and long term. • Waste management – neutral impact on the water and soil quality. The changing of the use for the land in Corna Valley will generate a negative impact during the construction and operation phase; this impact will considerably be diminished during the post-closure phase of the environment rehabilitation and by including blocks of land into natural fund. . • Water – neutral impact; we add here that the provisions regarding the collection and treatment of the ARD related to the previous mining works and proper management of all wastes will generate a positive quantified impact on the surface and underground waters’ quality within the entire area. • Air – insignificant negative impact, because the contribution of the operations to the pollutants’ concentration within the environment of the areas which include sensitive receivers will be very low, and the levels cumulated to the contribution of the existing sources will be well beyond the standard values. • Noise and vibrations – insignificant negative impact; due to the mitigation measures, there won’t be sound discomfort situations and neither affects on the population or the constructions through vibration. • Biodiversity, flora and fauna – negative impact during constructions and operations phase, positive impact after the closure of the activities and rehabilitation of the area. • Cultural, architectonic and archaeological heritage – significant positive impact following the works conducted by RMGC so far and the measures included in the Cultural heritage management plan. • People’s health – significant positive impact following the measures for creating modern living conditions, for improving the medical support and for ensuring that the environment quality is compliant with the legal provisions. • Road infrastructure / Transportation – significant positive impact related to road infrastructure following its upgrade and increase of the traffic safety. Neutral impact regarding the transport related to the mining project’s activities. • Landscape – insignificant negative impact, after rehabilitation and restoration of the area; the only significant negative impact, at local level, is the definitive change of the landscape. • Soil/Use of land – neutral impact, due to the impact prevention/mitigation measures. • Material values – positive impact, following the use of local resources and purchase of the properties based on mutual advantageous transactions. Significant positive impact, following the high recovery efficiency of the precious metal from the ore. • Climate – insignificant negative impact; we add here that the gas emission sources which have a greenhouse effect will disappear after the closure of the operations. • Transboundary – the only significant transboundary impact could be the pollution of surface waters following the failure of the tailings dam. The assessment of the transboundary residual impact on the surface waters related to the failure of the tailings dam from Corna Valley may be ranked as neutral.

For detail information please see Chapters 6 and 7 of the Environment Report for the

Page of answer 5 of 6 Pagina 95 din 206 Amendment of the Urbanism Plan for Roşia Montană Industrial Zone.

Page of answer 6 of 6 Pagina 96 din 206

Item no. 30

Stakeholder Cornea Călin name

Stakeholder Câmpeni address Observations Question/ - how much time is it between the start of the works until the end of ore mining in Rosia Comment Montana?

Taking into consideration the geological research period of approx. 5 years (between 1998- 2003), followed by a development period of approx. 6 years, then the construction of the project of approx. 2 years, operations period estimated for 16 years, plus approx. 5-7 years for closure, Answer sums up to approx. 35 years of development and closure of the mine. In addition to this period, we add at least 30-50 years of post-closure monitoring of the environment.

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Item no. 31

Stakeholder Nicula Călin name

Stakeholder Câmpeni address He worked more than 20 years in Rosia Montana. As resident of Campeni, he wishes to address the following questions: - Will the small entrepreneurs be supported by the company? And will the company work Question/ with companies from Campeni? Comment - In case of an earthquake, the TMF will break. How will Campeni be affected, as well as the surrounding areas? - Will the company open mines in Bucium, as well?

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

In addition to the direct and indirect benefits, Roşia Montană Project – as major investment – will improve the economic environment of the area which, at its turn, will encourage and promote the development of businesses not related to mining. It is expected that this qualitative increase of the investment and economic environment would lead to business opportunities which can develop in parallel with Roşia Montană Project (RMP), even though this plan goes beyond the mining activities. Diversifying the economic development is an important benefit of the investments generated through the development of RMP.

In order to fulfill its commitments, RMGC acknowledges the need of working with the community, authorities and civil society regarding the issues directly related to the development of the area.

This approach enables the community to hold, orientate and control all relevant development issues, in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) agrees that, for fulfilling its commitments regarding the sustainable development process, must approach all three strength pillars of sustainable development: social, economic and environment. These elements are presented below as 5 Answer interdependent fields, which form the key of sustainable development.

Five key components of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels;

Page of answer 1 of 6 Pagina 98 din 206 • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia

Page of answer 2 of 6 Pagina 99 din 206 Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

Through the designing criteria that have been used, the tailings management facility incorporates numerous supplementary safety measures as compared to the great majority of similar constructions around the world. This feature makes the facility robust and safe so as the risk of an accident resulting in a dam failure becomes extremely low.

The centreline construction techniques and the half-permeability characteristic of the dam contribute to the increase of the stability and safety degree for the facility.

S.C. Roşia Montană Gold Corporation S.A. commissioned NGI to conduct a hazard analysis and to estimate the probability of non-performance of the Corna Dam in the Tailings Management Facility (TMF) at Roşia Montană. The analyses establish whether the dam provides acceptable safety against release of tailings and water, and whether additional hazard reducing measures are needed.

The analyses were done with an event tree approach. This technique identifies potential failure mechanisms and follows how a series of events leading to non-performance of a dam might unfold. The probability of each scenario, given an initiating event, is quantified. The event tree hazard analyses considered the dam at different stages of its lifetime and calculated the probability of non-performance. The analyses considered critical scenarios, including all possible modes of non-performance for the Corna dam under extreme triggers such as a rare, unusually strong earthquake and extreme rainfall in a 24-hour period. The probabilities were associated with the possible consequences following a breach or overtopping of the dam.

The detailed hazard analyses, using the event tree approach, are intended to replace the earlier extreme scenarios of dam breach presented in the EIA Report (Report on Environmental Impact Assessment Study, Chapter 7 "Risks", May 2006). The probability of occurrence for the extreme dam break scenarios presented earlier was found to be too small for these scenarios to be considered realistic

Therefore, other scenarios with higher probability of occurrence were considered in event tree analyses. The analyses showed the following:

No sequence of plausible accidental events results in a probability of non-performance of the dam greater than 10-6 per year (once in a million years).

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The estimated probabilities of non-performance are lower than what is used as criteria for dams and other containment structures around the world and lower than probabilities of non- performance for most other engineered structures.

None of the probabilistic event tree analyses suggest consequences more severe than some material damage and limited contamination, both in the vicinity downstream of the dam. In the case of a breach of the Starter Dam, essentially all material released will be contained by the Secondary Containment Dam. In the case of a maximum plausible breach of the completed Corna Dam, the release would be less than approximately 250,000 m3 of tailings and 26,000 m3 of water.

The scenarios modelled, with a probability of occurrence of 10-6 per year, or once in 1 million years, resulted in considerably smaller released volumes than estimated in the extreme breach scenarios presented earlier. The scenarios studied with the event tree analyses indicate no damage (pollution) except in the immediate vicinity downstream. The design factors that influence the probability include the use of good quality rockfill for the downstream surface of the dam, gentle downstream slopes for both the Starter and especially the completed dam, dam capacity to store extreme precipitation events, spillway to release any excess water in a controlled manner and the planned safety monitoring to warn of any early signs of unexpected performance.

What happens to the TMF and to the town of Abrud?

• If an earthquake occurs • If an unexpected extreme precipitation occurs • If a land slide from Corna Valley occurs • If the foundation of the Cârnic stockpile fails and slides into the TMF • If the crest of the dam sinks/ subsides • If all these factors appear simultaneously • … All possible scenarios have been assessed

How was the assessment developed?

• A team of experts from USA, Norway, Canada and Romania was established including the former president of the International Committee for the Large Dams (ICOLD) • All possible scenarios regarding the potential tailings and water drainages from the TMF have been prepared for the entire life time of the TMF • The probability for these scenarios to occur has been calculated. • The comportment of the dam has been analyzed for each of the scenarios

What happens in the case of a breach of the dam?

All possibilities have been analyzed starting from “no tailings and water discharge” up to “Significant discharge that can lead to transboundary effects” The conclusion was that the worst behaviour would be: “discharge of a reduced volume that might cause certain material damages and a certain degree of contamination in the downstream close vicinity.“

Which is the probability for a breach to occur at the dam?

• All probabilities associated to all scenarios have been summed up. • The probability of occurrence of a breach in the dam is once at 1 million years • This means that the tailings management facility is of approx. 1000 times safer than most of the dams of tailings management facilities.

A breach may appear once at 1 million years

Why is the probability so low as compared to other dams?

Page of answer 4 of 6 Pagina 101 din 206

• Good quality rockfill used for the construction • Unusually large additional storage capacity • Reduced slope gradient (1:3) • Emergency discharge spillway ensuring a controlled discharge • Monitoring and detection system for the smallest modifications in the dam behaviour during the construction and operation phases

Physical Impact

Physical impact in the case of a dam breach: • Discharge of tailings over hundreds of meters downstream the dam • The volume approximated at 250,000 m3 of tailings and 26,000 m3 of waste water • Modelling the dispersion of the pollutants in the river system located downstream is starting from this scenario • Small and temporary exceed of the accepted cyanide limits for the surface waters in the close vicinity of Corna Valley

There is no potential transboundary impact.

Which are the consequences in case of an event with low probability of occurrence (breach in the tailings management facility) (once at 1 million years)?

• No home will be flooded • The concentrations might be over the accepted limits for the surface waters for a short period of time:

Page of answer 5 of 6 Pagina 102 din 206 ƒ In high water flow conditions, the accepted conditions will not be exceeded. • In the worst case scenarios (low water flows) the concentrations can exceed the accepted limits until reaching Turda. • But a series of measures are to be implemented as follows: monitoring, early warning, response in case of emergency in order to mitigate the damages. • There is no transboundary impact under any of the probable scenarios.

The occurrence probability for a dam breach under concurrent low water flow conditions is once at 10 million years

Page of answer 6 of 6 Pagina 103 din 206

Item no. 32

Stakeholder Cosma Gheorghe name

Stakeholder Abrud, Str. Aleea Parcului, Bl. M, Sc. 2, Ap. 21 address Observations - the public debate of the Plan is welcomed. It is important that this PUZ also includes the aspects related to the community and the patrimony of the town. So far, the company proved its good-will through activities such as: the preservation of the monuments from the area, the capitalization of the monument houses from Rosia Montana and other monuments emphasized by the Company. Question/ - The PUZ includes aspects of environment protection, including the cyanide Comment management. The blasting works won't generate an impact thanks to the technologies which will be applied; the seismic wave is annulled, there won't be that dust cloud which used to be generated during the previous mining in the pits. He finds the proposal presented by the Mayor from Sohol as being opportune, but there should be consideration given to competences. He finds the investment as being safe and opportune, and can't be compared to Baia Mare.

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it. Answer If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

Page of answer 1 of 3 Pagina 104 din 206 This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Page of answer 2 of 3 Pagina 105 din 206 Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

Page of answer 3 of 3 Pagina 106 din 206

Item no. 33

Stakeholder Tutuianu Crenguţa name

Stakeholder Câmpeni address Observations: Question/ - After the Project starts, will RMGC continue to support the cultural activities from Comment schools, town hall, hospitals?

The company is committed to promote the long term development opportunities, as part of the sustainable development plan.

More important than a policy of donations, we would like to consolidate the capacity of the community, so that ways for stimulating projects are identified, either cultural, educational or sport and entertainment related.

We will continue to support the schools, as we have done so far through topic related programs; we will get involved in the education field, as we already have several initiatives in this regard. Some are already very advanced. We remind here about the environment partnership, about the Centre of Resources for Youth, Apuseni. We got involved in cultural activities from the area, we are a traditional partner for the days of the town.

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of Answer construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

Page of answer 1 of 3 Pagina 107 din 206

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP)

Page of answer 2 of 3 Pagina 108 din 206 contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

Page of answer 3 of 3 Pagina 109 din 206

Item no. 34

Stakeholder Bud Laura name

Stakeholder Câmpeni address Observations - this meeting is one of the numerous meetings organized by the company in relation to the Project. She thinks she has the right to express her position, given that she is a resident of the area and she was involved in the education of the children from the area. - She's not against the economic development of the area. She's skeptical in relation to the Project. Quote "Our mountains carry gold, and we bag from door to door". - The mining of the mountains using powerful equipment will lead to the depletion of the gold and silver reserves in 10-15 years; more than 80% of the profit will belong to the Canadian Question/ company and approx. 20% to the Romanian State Comment - The use of cyanide impacts the surface waters from: Abrudel, Aries and further, Mures River, which collects the waters from the area. The possibility of an impact on the population's health is mentioned. She thinks that the project is not accepted by the residents of Campeni, especially due to the involvement of the foreign company. - Impact of the uranium - The Romanian Academy is a scientific forum whose negative point of view must be considered. Also, the Orthodox Church doesn't agree with the Project. - Abroad, such mines are built in isolated areas (deserts), and not within populated areas.

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off Answer part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments

Page of answer 1 of 8 Pagina 110 din 206 generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be

Page of answer 2 of 8 Pagina 111 din 206 transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

The Project has a longer life than the one indicated. Taking into consideration the geological research period of approx. 5 years (between 1998-2003), followed by a development period of

Page of answer 3 of 8 Pagina 112 din 206 approx. 6 years, then the construction of the project of approx. 2 years, operations period estimated for 16 years, plus approx. 5-7 years for closure, sums up to approx. 35 years of development and closure of the mine. In addition to this period, we add at least 30-50 years of post-closure monitoring of the environment.

It is important to mention that the rich part of the ore deposit was already mined during 2000 years of mining; what’s left is the low recovery content ore, therefore the low content of gold in the ore must be compensated through processing a large quantity of ore, so that to ensure an economic mine development.

The partnership between Gabriel Resources and Regia Autonoma a Cuprului Deva (currently, CNCAF Minvest SA) has been established based on Law no. 15/1990 on the reorganization of the state owned companies as public corporations and trade companies, published in the Official Gazette, Section I, no. 98/08.08.1990, as subsequently amended and supplemented. Art. 35 of this law provides the possibility of the regies autonomous to enter into partnerships with legal third parties, Romanian or foreign, for the purpose of setting up new trading companies.

Roşia Montană Gold Corporation SA was set up in 1997, according to the legal provisions in force as at that time, the setting up being made by observing all the conditions imposed by company Law no. 31/1990 and Trade Register Law no. 26/1990, in regard of the setting up of the joint venture companies.

We underline that the Articles of Associations of Roşia Montană Gold Corporation SA, representing the result of the parties agreement regarding the terms and conditions under which the partnership between the Romanian state and investor takes place represents a public document, being included in the category of documents which, as per Law no. 26/1990 on the Trade Register, are published in the Romanian Official Gazette and for which the Trade Register is obliged to issue, on the expense of the persons submitting a request, certified copies.

We also specify that the establishing of the shareholders’ quotas to the benefits and losses of Roşia Montană Gold Corporation SA has been made by considering their contribution quota to the company’s share capital. The current percentage of 80% for Gabriel Resources Ltd. and of 19.31% for CNCAF Minvest SA resulted from the initial contribution and the subsequent contributions of the shareholders to the company’s share capital, in consideration also of Gabriel Resources Ltd. advancing all expenses and costs related to the development-mining and permitting of the Roşia Montană Mining Project.

The most efficient and economic process for extracting the gold and silver from the ores is the type which will be used in Roşia Montană; this is based on full cyanide leaching of the ore mass. There are numerous examples in the world, of similar ores, which require the need of using cyanide technology for effectively extracting the precious metals. The implementation of the cyanide technology for gold and silver recovery from Roşia Montană ore is sustained by a detail testing program conducted by AMMTEC Limited and AMDEL Limited. The tests were scheduled and supervised by GRD MINPROC Limited, and the findings of the testing program were checked and reconfirmed by S.N.C. LAVALIN şi AUSENCO. The design of the cyanide leaching technology for the ore from Roşia Montană took into consideration the best practices used at European level and everywhere else in the world. The metal recovery technology using cyanide leaching through CIL is BAT (The Best available techniques (as per Chapter 3.1.6.2.2 and Chapter 5.2 of the BREF Guidelines [1] EU Document on BAT for Management [...] in Mining Activities, March 2004).

The cyanide will be delivered in solid state, within special designed and built ISO containers.

The cyanide will be dissolved straight into the transportation containers, in an alkaline solution, resulted from and re-circulated within a mixing tank. The mixing tank is designed so it can contain the full capacity of a transportation container. After dissolving the entire quantity of cyanide from a container, it will be then transferred from the mixing tank, into a big capacity storage tank.

The grinded ore, resulted from the overflow of the ball mill hydro-cyclones, is transferred to the

Page of answer 4 of 8 Pagina 113 din 206 container of the pump which feeds the CIL circuit, where it is mixed with cyanide and lime, needed to adjust the value of pH. The active carbon is added to the CIL tanks for facilitating the leaching process and the absorption of the dissolved metals.

The slurry goes through a leaching process consisting of two parallel alignments of 7 CIL tanks each, equipped with agitators. The size of a CIL tank is D = 18 m x H = 20 m. The size is designed so that enough time of contact between the cyanide solution, grinded ore mass and active carbon is ensured. Provided the needs, sodium cyanide solution is added to CIL tanks no. 2 and 4 of each alignment, so that the necessary cyanide concentration is sustained within the circuit. The slurry is circulated within the hydro-gravitational cyanide leaching circuit, and the carbon advances continuously in counter-flow of the slurry, pushed by vertical pumps. The time from one tank to another is adjusted for ensuring a gold and silver load in the carbon of 7000 to 8000 g/t.

The mixing of the slurry with flocculants which support the settlement of solids, takes place in the thickener. The thickener (tank) ensures the growth of the solid content in the sediment, as well as the relatively clarified water with cyanide content. This water, discharged from the thickener, will be directed towards the grinding circuit, for reusing and recovering the cyanide.

The thickened slurry is pumped towards the cyanide detoxification circuit, which works on SO2/air process, where the concentration of weak acid dissociable cyanide (WAD) from the slurry will decrease under the standard of Romania legislation and EU Directive. The management of the processing tailings and the detoxification technology are BAT techniques, according to the Chapter 3.1.6.3, 3.1.6.3.2 and 4.3.11.8 (EU Guiding Document on BAT for Management ... in Mining Activities, March 2004). The detoxified slurry will be pumped to the tailings dam.

The cyanide used during the processing phase will be handled/stored in accordance with the EU standards and the provisions of the International Cyanide Management Code (ICMC- www.cyanidecode.org ), and safely kept on the processing plant site, to avoid any potential leakage. The cyanide and its compounds will undergo the INCO detoxification (DETOX) which is considered The Best Available Technique (BAT- best available technique), according to BREF document, and the processing tailings will be pumped to the tailings management facility in accordance with the Governmental Decision no. 856/2008 regarding the management of the waste generated by extractive industries, which implements the provisions of the EU Directive 2006/21/CE on the management of waste generated from extractive industries.

Most part of the cyanide will be recovered in the processing plant.

The only source of process residual water of the Project is the detoxified tailings. The concentration of residual cyanide contained by treated slurry will have to comply with the EU Directive 2006/21/CE regarding the mining waste – maximum value of 10 ppm CNWAD (weak acid dissociable).

The model run for the predictable concentrations within the tailings dam proved that the tailings slurry is expected to contain 2 – 7 ppm WAD cyanide. Through further degradation, the concentrations will lower up to values below the standards set for surface waters (0.1 mg/l) in 1-3 years from closure. A side effect of this treatment is also the removal of many metals which could appear in the flow of industrial used waters.

After settling, the water is re-circulated back into the process; several processes take place in the dam during stationary time: natural cyanide degradation / decay, hydrolyze, volatilization, photo- oxidation, bio-oxidation, complexing / decomplexing, sediment adsorption, dilution caused by rainfalls, etc.

The data obtained from various mines during operations, show variable efficiencies for cyanide reduction (from 23-38% to 57-76% for total cyanides, and 21-42% to 71-80% for WAD cyanide) related to the season (temperatures).

There was considered an average of approx. 50% of CNt in the tailings dam during operations. After the closure of operations, as per the model run for the degradation/decay process, it is

Page of answer 5 of 8 Pagina 114 din 206 possible a reduction of the concentration even up to 0.1 mg CNt/l in the first three years.

The biggest part (90%) of the decayed cyanide quantity (the average of 50%) is done through hydrolyze/volatilization as hydrogen cyanide. The mathematic modeling of the hydrogen cyanide concentration from the tailings dam lead to a maximum hourly concentration of 382 µg/m3 in comparison to 5000 µg/m3, standard concentration for emissions set through ORDER of the Ministry of Waters, Forests and Environment Protection no. 462/1993 for the approval of Technical Conditions regarding the atmosphere protection and the Methodological Norms regarding the measuring of atmosphere pollutants generated from stationary sources, with its further completions and amendments.

Based on a complex assessment (volume 5), the health status of the population will not be affected on a 100 km radius.

The assessment of possible risks for human health has been carried out on the basis of the estimated concentration distribution of hazardous substances in Roşia Montană, taking into account more than 40 localities in the neighboring area, covering more than 200 km2. The assessment considers the known current distributions and concentrations of hazardous substances within the study area, and the future predictions with relation to the proposed mining activities. It is clear that the estimated concentrations, which are lower than the maximum permissible concentrations (MPC), do not cause significant adverse effects on the local population’s health.

However, while the proposed mining activities have not started at Roşia Montană, the local population is currently faced with health problems, in the sense that the health status of the local residents in the commune is deficient as compared to that of the neighboring population groups. Consequently, clear measures must be taken to improve the health of the Roşia Montană local residents. At the same time, as mentioned above, sitting and operating the proposed mine will not cause any other supplementary adverse effects on the local population’s health, as long as the distribution of the pollutant concentrations that have been studied complies with the dispersion models shown in the study (EIA).

Besides gold and silver, no other metals are known in Roşia Montană to have enough concentration so they can be economically mined and sold. This statement is supported by the data resulted from assaying 47 elements and numerous petrography studies. We stipulate here that, mostly, the concentration of the elements is part of the natural fund of earth surface: U (1.43 ppm reported to 3.7 ppm), Th (6.07 ppm reported to 18 ppm), Sr (95.4 ppm reported to 125 ppm), Mo (1.27 ppm reported to 1.5 ppm), In (0.05 ppm reported to 0.1ppm), Ge (0.21 ppm reported to 1.5 ppm) etc. All these results were obtained following large research programs conducted in 1997 – 2006, which included sampling from the existing underground mines, pit levels and surface rocks and a lot of surface and underground drilling works. This research program granted a highly level of detail for the deposit from Roşia Montană; each sample was assayed for a multitude of elements, as described above.

The previous mining works conducted in Roşia Montană didn’t recover such type of elements.

The EIA process has attempted to establish an open dialogue with all concerned stakeholders to discuss the technical merits of the project and the specific technical design details. Public meeting have been held throughout Romania in an attempt to understand concerns regarding the project and to communicate the specific details of designs. As part of those efforts, RMGC has communicated that human safety is ensured by a global safety management system, in accordance with the international standards ISO, EU Directives Seveso II and Seveso III on the control of major accident hazards involving dangerous substances, the EU Directive on the management of waste from extractive industries and the International Cyanide Management Code. The Project includes essential elements, specific to its development.

The most recent position of the Romanian Academy regarding the Roşia Montană project was made public on February 27, 2006, almost three months before the submission of the report to the Environmental Impact Assessment Study to the Ministry of Environment and Water Management.

Page of answer 6 of 8 Pagina 115 din 206 Thus the position does not reflect an analysis of the EIA that was actually submitted to the Ministry.

RMGC had previously changed various parts of the proposal, notably a reduction in the size of several proposed pits as well as enhancing sustainable development activities, and a stronger commitment to preservation of cultural patrimony including a reduced impact on local churches, in response to stakeholder consultations, including with members of the Academy, before submission of the EIA. RMGC would be happy to meet with the Academy to answer any questions regarding the project.

In the same train of thoughts, the objections raised by the Romanian Orthodox Patriarchate and by other churches were issued all before the submittal of the EIA. This redesigning is significant: it actually reduces the overall production of the mine by 900,000 gold ounces. So that the EIS Report doesn’t reflect the project which the Churches had objectives against. The project presents more favorable aspects in terms of patrimony preservation, as well as environmental protection. RMGC advices about its availability to meet with the Romanian Orthodox Patriarchate, as well as with other religion leaders, to answer to all their questions related to the Project.

Nobody wants to destroy churches or cemeteries. Only two out of seven churches from Roşia Montană and two of three praying buildings will have to be relocated and rebuilt due to the implementation of the Project. Those churches will be moved in accordance to the wishes expressed by congregations, on the expense of RMGC. The building of the churches will be one of the key issue of the new community from Piatra Alba, the new village built by the company.

The pits are mainly established in accordance with the location of the ore deposit.

The results of the environment assessment conducted on the potential remaining effects (after implementing the prevention/mitigation measures) of the Plan, including the transboundary impact, were expressed in a synthetic manner, into six impact categories which enabled us to identify the significant effects. The main results which are outlined by the quantified potential effects’ assessment of the Mining Project, subject of the assessed Plan, on each relevant environment aspect/factor, are described below:

• The population – significant positive impact, generated by the Project’s provisions of this major investment in relation to the improvement of the social and economic conditions of the community on short, medium and long term. • Waste management – neutral impact on the water and soil quality. The changing of the use for the land in Corna Valley will generate a negative impact during the construction and operation phase; this impact will considerably be diminished during the post-closure phase of the environment rehabilitation and by including blocks of land into natural fund. . • Water – neutral impact; we add here that the provisions regarding the collection and treatment of the ARD related to the previous mining works and proper management of all wastes will generate a positive quantified impact on the surface and underground waters’ quality within the entire area. • Air – insignificant negative impact, because the contribution of the operations to the pollutants’ concentration within the environment of the areas which include sensitive receivers will be very low, and the levels cumulated to the contribution of the existing sources will be well beyond the standard values. • Noise and vibrations – insignificant negative impact; due to the mitigation measures, there won’t be sound discomfort situations and neither affects on the population or the constructions through vibration. • Biodiversity, flora and fauna – negative impact during constructions and operations phase, positive impact after the closure of the activities and rehabilitation of the area. • Cultural, architectonic and archaeological heritage – significant positive impact following the works conducted by RMGC so far and the measures included in the Cultural heritage management plan. • People’s health – significant positive impact following the measures for creating modern living conditions, for improving the medical support and for ensuring that the environment

Page of answer 7 of 8 Pagina 116 din 206 quality is compliant with the legal provisions. • Road infrastructure / Transportation – significant positive impact related to road infrastructure following its upgrade and increase of the traffic safety. Neutral impact regarding the transport related to the mining project’s activities. • Landscape – insignificant negative impact, after rehabilitation and restoration of the area; the only significant negative impact, at local level, is the definitive change of the landscape. • Soil/Use of land – neutral impact, due to the impact prevention/mitigation measures. • Material values – positive impact, following the use of local resources and purchase of the properties based on mutual advantageous transactions. Significant positive impact, following the high recovery efficiency of the precious metal from the ore. • Climate – insignificant negative impact; we add here that the gas emission sources which have a greenhouse effect will disappear after the closure of the operations. • Transboundary – the only significant transboundary impact could be the pollution of surface waters following the failure of the tailings dam. The assessment of the transboundary residual impact on the surface waters related to the failure of the tailings dam from Corna Valley may be ranked as neutral.

For detail information please see Chapters 6 and 7 of the Environment Report for the Amendment of the Urbanism Plan for Roşia Montană Industrial Zone.

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Item no. 35

Stakeholder Uţiu Ioan name

Stakeholder Abrud address Observations - he claims that no new things are presented in relation to the project, in comparison to the previous presentations - in regards to the Romanian Academy - according to the legislation, this institution doesn't have a decisional role. This role is held by the Ministry of Environment through its representatives in the public debate. He asks for the position of the Environment Ministry representatives. - An interesting thing was presented on the slides: the negative impact, insignificant impact, for which we have mitigation plans - where are the plans? Question/ - The benefits of the Romanian State Comment - Sustainable Development - as framework, I don't know if we will get to work within the limits of sustainable development - In regards to the PUZ: quote from Law no. 350 - there are interdictions regarding the initiation of certain types of plans, namely the zonal plans for promoting a certain investment project - the legality of initiating the PUZ, the opportunity endorsement - The emission of heavy metals from the pit mining operations can lead to dispersion on a certain distance which can generate a significant pollution of the area, covering some hundreds of kilometers. This area must be regarded as a risk area.

The EIA process has attempted to establish an open dialogue with all concerned stakeholders to discuss the technical merits of the project and the specific technical design details. Public meeting have been held throughout Romania in an attempt to understand concerns regarding the project and to communicate the specific details of designs. As part of those efforts, RMGC has communicated that human safety is ensured by a global safety management system, in accordance with the international standards ISO, EU Directives Seveso II and Seveso III on the control of major accident hazards involving dangerous substances, the EU Directive on the management of waste from extractive industries and the International Cyanide Management Code. The Project includes essential elements, specific to its development.

The most recent position of the Romanian Academy regarding the Roşia Montană project was made public on February 27, 2006, almost three months before the submission of the report to the Environmental Impact Assessment Study to the Ministry of Environment and Water Management.

Answer Thus the position does not reflect an analysis of the EIA that was actually submitted to the Ministry.

RMGC had previously changed various parts of the proposal, notably a reduction in the size of several proposed pits as well as enhancing sustainable development activities, and a stronger commitment to preservation of cultural patrimony including a reduced impact on local churches, in response to stakeholder consultations, including with members of the Academy, before submission of the EIA. RMGC would be happy to meet with the Academy to answer any questions regarding the project.

The results of the environment assessment conducted on the potential remaining effects (after implementing the prevention/mitigation measures) of the Plan, including the transboundary impact, were expressed in a synthetic manner, into six impact categories which enabled us to identify the significant effects. The main results which are outlined by the quantified potential effects’ assessment of the Mining Project, subject of the assessed Plan, on each relevant

Page of answer 1 of 7 Pagina 118 din 206 environment aspect/factor, are described below:

• The population – significant positive impact, generated by the Project’s provisions of this major investment in relation to the improvement of the social and economic conditions of the community on short, medium and long term. • Waste management – neutral impact on the water and soil quality. The changing of the use for the land in Corna Valley will generate a negative impact during the construction and operation phase; this impact will considerably be diminished during the post-closure phase of the environment rehabilitation and by including blocks of land into natural fund. . • Water – neutral impact; we add here that the provisions regarding the collection and treatment of the ARD related to the previous mining works and proper management of all wastes will generate a positive quantified impact on the surface and underground waters’ quality within the entire area. • Air – insignificant negative impact, because the contribution of the operations to the pollutants’ concentration within the environment of the areas which include sensitive receivers will be very low, and the levels cumulated to the contribution of the existing sources will be well beyond the standard values. • Noise and vibrations – insignificant negative impact; due to the mitigation measures, there won’t be sound discomfort situations and neither affects on the population or the constructions through vibration. • Biodiversity, flora and fauna – negative impact during constructions and operations phase, positive impact after the closure of the activities and rehabilitation of the area. • Cultural, architectonic and archaeological heritage – significant positive impact following the works conducted by RMGC so far and the measures included in the Cultural heritage management plan. • People’s health – significant positive impact following the measures for creating modern living conditions, for improving the medical support and for ensuring that the environment quality is compliant with the legal provisions. • Road infrastructure / Transportation – significant positive impact related to road infrastructure following its upgrade and increase of the traffic safety. Neutral impact regarding the transport related to the mining project’s activities. • Landscape – insignificant negative impact, after rehabilitation and restoration of the area; the only significant negative impact, at local level, is the definitive change of the landscape. • Soil/Use of land – neutral impact, due to the impact prevention/mitigation measures. • Material values – positive impact, following the use of local resources and purchase of the properties based on mutual advantageous transactions. Significant positive impact, following the high recovery efficiency of the precious metal from the ore. • Climate – insignificant negative impact; we add here that the gas emission sources which have a greenhouse effect will disappear after the closure of the operations. • Transboundary – the only significant transboundary impact could be the pollution of surface waters following the failure of the tailings dam. The assessment of the transboundary residual impact on the surface waters related to the failure of the tailings dam from Corna Valley may be ranked as neutral.

For detail information please see Chapters 6 and 7 of the Environment Report for the Amendment of the Urbanism Plan for Roşia Montană Industrial Zone.

In relation to the insignificant impact and the plans you are asking about, we could say we are a happy case – the EIA for RMP was carried out in 2006, the Environment Report was initiated and issued in 2007, so that all the baseline studies, management plans could have been reviewed by the Working Group and by the experts’ team which prepared this Environment Report.

These management plans can also be found on the internet page of the company: http://www.rmgc.ro/rosia_montana.php?page=raport

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Page of answer 2 of 7 Pagina 119 din 206

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels;

Page of answer 3 of 7 Pagina 120 din 206 • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia

Page of answer 4 of 7 Pagina 121 din 206 Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

The partnership between Gabriel Resources and Regia Autonoma a Cuprului Deva (currently, CNCAF Minvest SA) has been established based on Law no. 15/1990 on the reorganization of the state owned companies as public corporations and trade companies, published in the Official Gazette, Section I, no. 98/08.08.1990, as subsequently amended and supplemented. Art. 35 of this law provides the possibility of the regies autonomous to enter into partnerships with legal third parties, Romanian or foreign, for the purpose of setting up new trading companies.

Roşia Montană Gold Corporation SA was set up in 1997, according to the legal provisions in force as at that time, the setting up being made by observing all the conditions imposed by company Law no. 31/1990 and Trade Register Law no. 26/1990, in regard of the setting up of the joint venture companies.

We underline that the Articles of Associations of Roşia Montană Gold Corporation SA, representing the result of the parties agreement regarding the terms and conditions under which the partnership between the Romanian state and investor takes place represents a public document, being included in the category of documents which, as per Law no. 26/1990 on the Trade Register, are published in the Romanian Official Gazette and for which the Trade Register is obliged to issue, on the expense of the persons submitting a request, certified copies.

We also specify that the establishing of the shareholders’ quotas to the benefits and losses of Roşia Montană Gold Corporation SA has been made by considering their contribution quota to the company’s share capital. The current percentage of 80% for Gabriel Resources Ltd. and of 19.31% for CNCAF Minvest SA resulted from the initial contribution and the subsequent contributions of the shareholders to the company’s share capital, in consideration also of Gabriel Resources Ltd. advancing all expenses and costs related to the development-mining and permitting of the Roşia Montană Mining Project.

There are two legal issues related to the Law 350/2001 regarding the urbanism: a PUZ can’t promote an investment, which is correct, but please do take into account that we talk about a PUZ existing since 2002, which was approved by Roşia Montană commune and the current topic is the amendment of the existing PUZ. Therefore, that project doesn’t fit in this situation. The second matter relates to an opportunity endorsement which the Local Council should grant when initiating a PUZ. This opportunity endorsement was included in the legislation last year. The amendment of the PUZ started in 2006; there is a principle and that is that the law doesn’t apply

Page of answer 5 of 7 Pagina 122 din 206 retroactively (ex post facto). In relation to this opportunity endorsement, we obtained an agreement in principle when we initiated this amendment. When the amendment of the existing PUZ was initiated, there wasn’t any law to ask for an opportunity endorsement.

The Decisions of the Council are included in the Annex 6 of the Environmental Report for the Amendment of the PUZ for Roşia Montană Industrial Area, being public for 1 year.

The ore processing operation generates metal loaded ARD. In the closed mines, (the mine existing at Roşia Montană) the generation of ARD continues and the management of ARD in modern mining industry includes the closure and post-closure stages, too.

The technological process presented in the Roşia Montană project generate two sources of metal loaded ARD:

• ARD, important source as far as flows and metallic ions concentrations are concerned; • Tailings slurry resulting from the processing of ore using cyanides.

1. For mine waters, there’s a water collection and abstraction system (in the ARD dam Cetate and seepage retention dam Cârnic), monitoring and treatment in a specially designed installation, anticipated to be developed during the construction phase of the project.

Treatment will be performed in compliance with BAT, with a large application by pH adjustment and metal precipitation in two steps using lime and carbon dioxide as insoluble compounds (hydroxides, carbonates, hydroxycarbonate).

The treated effluent will be partially reutilized in the process, after the first precipitation stage, therefore it will not get dispersed into the environment, and the final effluent that will comply with the NTPA 001 limits for metals, will be used to maintain environmental baseflows in Roşia and Corna Streams.

The slurry will be directed to the TMF.

The installation is conceived to function during the operation, closure and post-closure stages of the Roşia Montană Project.

During the last three years of the operation period, the passive treatment processes will be tested in the lagoons.

These will replace the ARD active treatment plants in the post-closure period, should the result be satisfactory and the NTPA 001 discharge standards will be complied with.

2. INCO process (oxidation with SO2/air) and lime pH 8-10, for treatment of tailings slurry is mainly used for the destruction of cyanides.

Concomitantly, given the above conditions, precipitation of heavy metals as hydroxides takes place – Me(OH)2 or insoluble cyanic complexes with Fe – Me2Fe(CN)6.

Treated slurry is discharged into the TMF, and after settling, water is recirculated in the process. The seepage from the TMF are collected in the secondary dam sump and is recirculated in the decant pond. As per the water flow described in the Project, on this route, there are no metal- loaded waters discharged into the environment, during normal operation stage.

Under abnormal operation conditions, when the storage capacity designed for the pond is exceeded, (>2 PMP successive) and if the natural dilution taking place in such extreme situation – does not provide the quality conditions requested by NTPA 001, the project provides a treatment plant for low cyanide content waters where precipitation of metals will be performed.

In conclusion, the Roşia Montană project provides realistic technical solutions to avoid metal pollution risks.

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Item no. 36

Stakeholder Blăjan Marcu name

Stakeholder Roşia Montană address Observations - he wants that the residents of this area to benefit of these resources Question/ - he believes that this project should be designed with full responsibility, and asks for Comment green light for starting the project

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs Answer available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

Page of answer 1 of 3 Pagina 125 din 206

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă;

Page of answer 2 of 3 Pagina 126 din 206 • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

Page of answer 3 of 3 Pagina 127 din 206

Item no. 37

Stakeholder Mera Dan Andrei name

Stakeholder Abrud (Organizatie Dezvoltare Durabila Si Politici Publice) address Observations Question/ - employment and training courses Comment

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local Answer community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Page of answer 1 of 3 Pagina 128 din 206

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc.

Page of answer 2 of 3 Pagina 129 din 206 • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

Page of answer 3 of 3 Pagina 130 din 206

Item no. 38

Stakeholder Goia Liana name

Stakeholder Câmpeni address Observations - there are companies which grant scholarships for the students who have great results. Question/ Does RMGC think of doing something similar? Comment - Does RMGC have any project for supporting the youth?

The company is committed to promote the long term development opportunities, as part of the sustainable development plan.

More important than a policy of donations, we would like to consolidate the capacity of the community, so that ways for stimulating projects are identified, either cultural, educational or sport and entertainment related.

We will continue to support the schools, as we have done so far through topic related programs; we will get involved in the education field, as we already have several initiatives in this regard. Some are already very advanced. We remind here about the environment partnership, about the Centre of Resources for Youth, Apuseni. We got involved in cultural activities from the area, we are a traditional partner for the days of the town.

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have Answer already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments

Page of answer 1 of 4 Pagina 131 din 206 generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be

Page of answer 2 of 4 Pagina 132 din 206 transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

Page of answer 3 of 4 Pagina 133 din 206

Page of answer 4 of 4 Pagina 134 din 206

Item no. 39

Stakeholder Dumitraş Ioan name

Stakeholder Bucium Sat, Nr. 661a address Local Councillor of Bucium. He believes that it is important to participate and express the opinion of locals on this development. He has experience in mining industry.

Observations: - The Project has taken too many steps ahead to be stopped, considering the expropriations conducted to date and the RMGC land ownership over several land positions, and he believes that neither the state nor any other company may develop other activities under acceptable conditions without the approval of RMGC. - The things offered by RMGC to locals and the things offered in similar areas are far more convenient due to the goodwill of RMGC - A natural question: Why only 20 years are necessary for developing and depleting the ore deposits, what shall happen afterwards? - Similarly, the issue of cyanide in leach appears, why is this method used? Question/ - The issue of why the Romanian state has only 20% of the shares is also raised. It is important Comment that also only 20% of the profits were secured by the state in other times, and the rest? - Several beneficial elements of the Project cannot be ignored: jobs, lack of capacity and strength from behalf of Romanian State to revitalize the mining industry, this industry is necessary during these times. - There are adverse implications: the documentation accompanying the Project is well developed, but the issue of "from theory to practice" is also raised. The national and worldwide experience shows the disasters left behind by the mining operations. Usually the cyanide in leach is performed in unpopulated areas, and here, just downstream one can see the city of Abrud. Recommendations for the Romanian State: to monitor the observance of the Project and of all the commitments assumed through the Project and to raise the guarantees submitted by RMGC for conducting the environmental rehabilitation works - In general, he supports the launch of the Project, but to observe several conditions that are in favour of the local communities.

The properties acquisition process is developed in accordance with the national legislation and the ownership right; in addition, the decision to sell the property and start a new life in a new home (sometimes, a new place) is a difficult decision. Therefore, RMGC approached this matter with full responsibility, providing enough time for reviewing all the options and taking this decision knowing all the details. The families affected by this process received support before and after the sale of the property from the project’s area. The acquisition of 794 households was carried out on the grounds of the free-will principle, for both the seller and purchaser. When RMGC will resume the acquisition of the properties, same principles will be followed so it grants an equal opportunity to all owners.

Answer Also, we would like to have a permanent dialogue with all the families in the area where the project is proposed to be developed, to inform and consult these families in relation to all the options and benefits, and to find out about their concerns.

The method selected for establishing the value of the properties in Roşia Montană is compliant with the recommendations of the World Bank and is based on the “replacing value” within the same conditions. For this purpose, the replacing value was established on the grounds of real estate market assessment from 14 towns on a radius of 250km around Roşia Montană commune, and calculating an average of the observed replacing costs. Cluj town, even though located within the assessed radius, comes first on the list of places taken into consideration. If it is expected that the replacing value be reported to the real estate market from Cluj, then

Page of answer 1 of 8 Pagina 135 din 206 establishing an average would not make any sense. Following the same logic, it wouldn’t be fair and correct that the replacing value to be set in accordance with the prices recorded by a top place in the region – and that is Zlatna. It was considered that the fairest method to establish the “replacing value” is to calculate an average of the prices recorded by those 14 real estate markets. The current prices for various types of house and land were established giving consideration to the level of prices in Alba Iulia town. The prices were reviewed in the past 6 months, twice, in accordance with the results of the assessment mentioned above.

Taking into consideration the geological research period of approx. 5 years (between 1998- 2003), followed by a development period of approx. 6 years, then the construction of the project of approx. 2 years, operations period estimated for 16 years, plus approx. 5-7 years for closure, sums up to approx. 35 years of development and closure of the mine. In addition to this period, we add at least 30-50 years of post-closure monitoring of the environment.

It is important to mention that the rich part of the ore deposit was already mined during 2000 years of mining; what’s left is the low recovery content ore, therefore the low content of gold in the ore must be compensated through processing a large quantity of ore, so that to ensure an economic mine development.

The most efficient and economic process for extracting the gold and silver from the ores is the type which will be used in Roşia Montană; this is based on full cyanide leaching of the ore mass. There are numerous examples in the world, of similar ores, which require the need of using cyanide technology for effectively extracting the precious metals. The implementation of the cyanide technology for gold and silver recovery from Roşia Montană ore is sustained by a detail testing program conducted by AMMTEC Limited and AMDEL Limited. The tests were scheduled and supervised by GRD MINPROC Limited, and the findings of the testing program were checked and reconfirmed by S.N.C. LAVALIN şi AUSENCO. The design of the cyanide leaching technology for the ore from Roşia Montană took into consideration the best practices used at European level and everywhere else in the world. The metal recovery technology using cyanide leaching through CIL is BAT (The Best available techniques (as per Chapter 3.1.6.2.2 and Chapter 5.2 of the BREF Guidelines [1] EU Document on BAT for Management [...] in Mining Activities, March 2004).

The cyanide will be delivered in solid state, within special designed and built ISO containers. The cyanide will be dissolved straight into the transportation containers, in an alkaline solution, resulted from and re-circulated within a mixing tank. The mixing tank is designed so it can contain the full capacity of a transportation container. After dissolving the entire quantity of cyanide from a container, it will be then transferred from the mixing tank, into a high capacity storage tank.

The grinded ore, resulted from the overflow of the ball mill hydro-cyclones, is transferred to the container of the pump which feeds the CIL circuit, where it is mixed with cyanide and lime, needed to adjust the value of pH. The active carbon is added to the CIL tanks for facilitating the leaching process and the absorption of the dissolved metals.

The slurry goes through a leaching process consisting of two parallel alignments of 7 CIL tanks each, equipped with agitators. The size of a CIL tank is D = 18 m x H = 20 m. The size is designed so that enough time of contact between the cyanide solution, grinded ore mass and active carbon is ensured. Provided the needs, sodium cyanide solution is added to CIL tanks no. 2 and 4 of each alignment, so that the necessary cyanide concentration is sustained within the circuit. The slurry is circulated within the hydro-gravitational cyanide leaching circuit, and the carbon advances continuously in counter-flow of the slurry, pushed by vertical pumps. The time from one tank to another is adjusted for ensuring a gold and silver load in the carbon of 7000 to 8000 g/t.

The mixing of the slurry with flocculants which support the settlement of solids, takes place in the thickener. The thickener (tank) ensures the growth of the solid content in the sediment, as well as the relatively clarified water with cyanide content. This water, discharged from the thickener, will be directed towards the grinding circuit, for reusing and recovering the cyanide.

Page of answer 2 of 8 Pagina 136 din 206 The thickened slurry is pumped towards the cyanide detoxification circuit, which works on SO2/air process, where the concentration of weak acid dissociable cyanide (WAD) from the slurry will decrease under the standard of Romania legislation and EU Directive. The management of the processing tailings and the detoxification technology are BAT techniques, according to the Chapter 3.1.6.3, 3.1.6.3.2 and 4.3.11.8 (EU Guiding Document on BAT for Management ... in Mining Activities, March 2004). The detoxified slurry will be pumped to the tailings dam.

The cyanide used during the processing phase will be handled/stored in accordance with the EU standards and the provisions of the International Cyanide Management Code (ICMC- www.cyanidecode.org ), and safely kept on the processing plant site, to avoid any potential leakage. The cyanide and its compounds will undergo the INCO detoxification (DETOX) which is considered The Best Available Technique (BAT- best available technique), according to BREF document, and the processing tailings will be pumped to the tailings management facility in accordance with the Governmental Decision no. 856/2008 regarding the management of the waste generated by extractive industries, which implements the provisions of the EU Directive 2006/21/CE on the management of waste generated from extractive industries.

Most part of the cyanide will be recovered in the processing plant.

The only source of process residual water of the Project is the detoxified tailings. The concentration of residual cyanide contained by treated slurry will have to comply with the EU Directive 2006/21/CE regarding the mining waste – maximum value of 10 ppm CNWAD (weak acid dissociable).

The model run for the predictable concentrations within the tailings dam proved that the tailings slurry is expected to contain 2 – 7 ppm WAD cyanide. Through further degradation, the concentrations will lower up to values below the standards set for surface waters (0.1 mg/l) in 1-3 years from closure. A side effect of this treatment is also the removal of many metals which could appear in the flow of industrial used waters.

After settling, the water is re-circulated back into the process; several processes take place in the dam during stationary time: natural cyanide degradation / decay, hydrolyze, volatilization, photo- oxidation, bio-oxidation, complexing / decomplexing, sediment adsorption, dilution caused by rainfalls, etc.

The data obtained from various mines during operations, show variable efficiencies for cyanide reduction (from 23-38% to 57-76% for total cyanides, and 21-42% to 71-80% for WAD cyanide) related to the season (temperatures).

There was considered an average of approx. 50% of CNt in the tailings dam during operations. After the closure of operations, as per the model run for the degradation/decay process, it is possible a reduction of the concentration even up to 0.1 mg CNt/l in the first three years.

The largest part (90%) of the degraded cyanide quantity (the average of 50%) is done through hydrolyze/volatilization as hydrogen cyanide. The mathematic modeling of the hydrogen cyanide concentration from the tailings dam lead to a maximum hourly concentration of 382 µg/m3 in comparison to 5000 µg/m3, standard concentration for emissions set through ORDER of the Ministry of Waters, Forests and Environment Protection no. 462/1993 for the approval of Technical Conditions regarding the atmosphere protection and the Methodological Norms regarding the measuring of atmosphere pollutants generated from stationary sources, with its further completions and amendments.

The EIA and the feasibility study investigated a wide range of processing options to ensure the project’s economic, environmental, cultural and social viability. The designated process best satisfies these criteria, and is the only option that meets BAT (Best Available Technology) as required by the EU and all environmental requirements.

It is important to keep in mind in this regard that the economic cut-off grade used to determine if material mined from the pits is ore or waste is determined based on the minimum grade existing in the rock that may be mined economically.

Page of answer 3 of 8 Pagina 137 din 206

A number of alternatives (see alternatives section of the EIA in Chapter 5) were investigated as part of the feasibility study and EIA process. None of these alternatives were able to meet the requirements and optimize the benefits of the project while at the same time fulfilling the broader socio-economic and environmental responsibilities of the project. Mercury amalgamation, for example, may be able to pick up the gold that’s in the sulfide, but it would also release tons of millions of mercury. Roasting the concentrate to break down the sulfide, on the other hand, would release significant levels of SO2 and hydrogen sulfide. The process chosen is the safest, cleanest and most economical process available for the project.

The partnership between Gabriel Resources and Regia Autonoma a Cuprului Deva (currently, CNCAF Minvest SA) has been established based on Law no. 15/1990 on the reorganization of the state owned companies as public corporations and trade companies, published in the Official Gazette, Section I, no. 98/08.08.1990, as subsequently amended and supplemented. Art. 35 of this law provides the possibility of the regies autonomous to enter into partnerships with legal third parties, Romanian or foreign, for the purpose of setting up new trading companies.

Roşia Montană Gold Corporation SA was established in 1997, according to the legal provisions in force as at that time, the setting up being made by observing all the conditions imposed by company Law no. 31/1990 and Trade Register Law no. 26/1990, in regard of the establishment of the joint venture companies.

We also specify that the establishing of the shareholders’ quotas to the benefits and losses of Roşia Montană Gold Corporation SA has been made by considering their contribution quota to the company’s share capital. The current percentage of 80% for Gabriel Resources Ltd. and of 19.31% for CNCAF Minvest SA resulted from the initial contribution and the subsequent contributions of the shareholders to the company’s share capital, in consideration also of Gabriel Resources Ltd. advancing all expenses and costs related to the development-exploitation and permitting of the Roşia Montană Mining Project.

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments

Page of answer 4 of 8 Pagina 138 din 206 generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be

Page of answer 5 of 8 Pagina 139 din 206 transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

The activities of closure and ecological rehabilitation in Roşia Montană include the following:

Page of answer 6 of 8 Pagina 140 din 206 • Topsoil cover of the waste dumps, as long as they are not used for backfilling the pits; • Backfilling of the pits, excepting Cetate pit which will be flooded and converted into a lake; • Topsoil cover of the TMF and of the tailings dam; • Decommissioning of the production plants not longer in use and the ecological reconstruction of the decommissioned areas; • Water treatment though semi-passive systems (including traditional treatment systems as back up) until the level of the indicators for all effluents reach the standard and don’t require continuation of the treatment process; • Maintenance of the vegetation, prevention of the erosion and monitoring of the entire site, until RMGC demonstrates that all rehabilitation objectives were made in a sustainable manner.

In accordance with the Mining Law from Romania and the EU Directive regarding the mining waste, there will be an environmental financial guarantee set up (EFG) before creating any debt. EFG is established by the Mining Law (no. 85/2003) and by the Guidelines for applying the Mining Law issued by the National Agency for Mineral Resources (endorsed by Governmental Decision no. 1208/2003).

In accordance with the national legislation, there are two separate and different EFG.

The first one, which is updated every year, focuses on covering the costs forecasted for the ecological rehabilitation related to the operation of the mining objective during the respective year, as per art. 133 of Governmental Decision no. 1208/2003.

The second guarantee, which is also update every year, establishes the costs forecasted for an eventual closure of the Roşia Montană mine. The value of the EFG aimed for covering the costs related to final environment rehabilitation is calculated as annual quota from the value of the environment rehabilitation works forecasted within the monitoring program, post-closure. This program is part of the Technical Program for the mine closure, a document which has to be approved by the National Agency for Mineral Resources ("ANRM”).

All EFGs will comply with the detail rules issued by the World Bank and the International Council for Mining and Metals.

There are, also, two Directives of the EU which regulate the EFG: The Directive for mining waste no. 2006/21/CE („DSM”) and Directive no. 2004/35/CE for environment responsibility („DRM”).

The Scope of the Mining Waste Directive is to ensure the coverage for 1) all obligations resulting from the permit issued for the removal of the waste generated by mining works and 2) all costs related to the rehabilitation of the land affected by the waste storage. The Directive for the environment responsibility sets up the remediation activities and the measures which must be implemented by the environment authorities in case of an ecological accident due to mining operators, for the purpose of ensuring that the operators have available the appropriate financial resources for the ecological remediation works.

RMGC will comply with the legal provisions regarding the financial guarantees, which will be adopted in future, by the authorities, on the grounds of Artciel 33 of the Government Emergency Ordinance no. 2004/35/CE on the environment responsibility, the prevention and rehabilitation of the damage brought to the environment and Article 50 of the Government Decision no. 856/2008 implementing the Directive 2006/21/CE on the mine waste management and amending of the Directive 2004/35/CE.

The current closure costs for Roşia Montană are 135 million USD, calculated for the mine operation life of 16 years. The annual updates will be established by independent experts, in liaison with ANRM, in the quality of competent governmental authority in the field of mining operations. The updates ensure that, in the case of very unlikely early closure of the project, and at any time, EFG always reflects the costs needed for the ecological rehabilitation. (These annual updates will result in an estimate value which exceeds the current closure cost of 135 million USD, because the usual operation of the mine includes certain ecological rehabilitation

Page of answer 7 of 8 Pagina 141 din 206 works).

The annual updates include four viable elements:

• Changes brought to the project and which affect the objectives of ecological rehabilitation; • Changes of the legislation in Romania, including the implementation of the UE Directives; • New technologies which improve the methods and practices for ecological rehabilitation; • Changes of the price for certain key products and services needed for the ecological rehabilitation.

Once these updates are completed, the new estimate costs for closure works will be included in the financial statements of RMGC and will be disclosed.

According to the law, several financial tools are available for ensuring that RMGC is capable to cover all the closure costs, so that the Romanian Authorities don’t have any financial responsibility concerning the environment rehabilitation due to Roşia Montană Project.

The TMF design criteria involve a number of extra safety measures, in addition to the ones characterizing most similar facilities in the world. As a result, the TMF is an extremely robust and safe structure, with an extremely low risk of failure.

The centerline method of construction and the pervious dam design concept (subchapter 3.2.5.5) increase the dam’s stability and safety level. In the light of all these, risks have been assessed and potential accident scenarios have been imagined, including an assessment of the seriousness of the potential consequences.

Compared to other tailings dams in the world, where accidents have happened, the proposed TMF on the Corna Valley is much more robust and has various safety elements. Unlike many other similar structures in the world, the tailings dam will be semi permeable, which will ensure the reduction of water content in the tailings slurry.

Based on the criteria previously mentioned, the dam has been designed to withstand an earthquake measuring 8 on the Richter scale. No such event has ever been experienced on the Romanian territory and it is hard to imagine the mechanism that could cause such an event in the future.

The main design elements that ensure the dam’s increased safety include the following:

• the dam has been designed to retain water resulting from 2 PMP • with each dam rise, a spillway will be constructed to discharge, in a controlled way, the excess water resulting from a potential extreme event. This will eliminate the potential for erosion of the downstream slopes; • the rockfill starter dam has an impervious core and an embankment slope measuring 2H:1V downstream and 1.75H:1V upstream; • The main TMF dam will be constructed using the centerline and downstream construction method. The downstream slopes will measure 3H: 1V. Usually, the slopes for such hydrotechnical structures range between 1.5H:1V and 1.75H:1V; • a drainage system is planned at the bottom of the waste rock dump to reduce water levels in the waste materials ; • a monitoring system set up on the dam’s crest or on its vicinity, to provide timely information regarding potential instability situations, excessive rise of the groundwater in the dam body, excessive increase of the water volume stored in the decant pond. • implementation of a strict Quality Assurance program, during the entire construction period.

Page of answer 8 of 8 Pagina 142 din 206

Item no. 40

Stakeholder Napău Cornel name

Stakeholder Bucium Poieni, Nr. 608 address Observations: - There is a negative experience from environmental and mining points of view in Romania. He provides as and example the environmental rehabilitation launched and uncompleted in Gura Rosiei. A positive example cannot be found on this issue. This is a general thing. He supports Question/ the Project considering the limited possibilities, but it is critical to observe the Project as Comment designed, especially because a TMF of approx 200ha shall result, and if not properly managed, pollution may result in the area. RMGC supported Bucium Local Council, the investment is wanted, but uncertainties exist with respect to environmental rehabilitation. With respect to Rosia Poieni, currently the open pit is generating dust emissions.

The activities of closure and ecological rehabilitation in Roşia Montană include the following:

• Topsoil cover of the waste dumps, as long as they are not used for backfilling the pits; • Backfilling of the pits, excepting Cetate pit which will be flooded and converted into a lake; • Topsoil cover of the TMF and of the tailings dam; • Decommissioning of the production plants not longer in use and the ecological reconstruction of the decommissioned areas; • Water treatment though semi-passive systems (including traditional treatment systems as back up) until the level of the indicators for all effluents reach the standard and don’t require continuation of the treatment process; • Maintenance of the vegetation, prevention of the erosion and monitoring of the entire site, until RMGC demonstrates that all rehabilitation objectives were made in a sustainable manner.

In accordance with the Mining Law from Romania and the EU Directive regarding the mining waste, there will be an environmental financial guarantee set up (EFG) before creating any debt. EFG is established by the Mining Law (no. 85/2003) and by the Guidelines for applying the Mining Law issued by the National Agency for Mineral Resources (endorsed by Governmental Answer Decision no. 1208/2003).

In accordance with the national legislation, there are two separate and different EFG.

The first one, which is updated every year, focuses on covering the costs forecasted for the ecological rehabilitation related to the operation of the mining objective during the respective year, as per art. 133 of Governmental Decision no. 1208/2003.

The second guarantee, which is also update every year, establishes the costs forecasted for an eventual closure of the Roşia Montană mine. The value of the EFG aimed for covering the costs related to final environment rehabilitation is calculated as annual quota from the value of the environment rehabilitation works forecasted within the monitoring program, post-closure. This program is part of the Technical Program for the mine closure, a document which has to be approved by the National Agency for Mineral Resources ("ANRM”).

Each EFG will comply with the detail rules issued by the World Bank and the International Council for Mining and Metals.

There are, also, two Directives of the EU which regulate the EFG: The Directive for mining waste

Page of answer 1 of 6 Pagina 143 din 206 no. 2006/21/CE („DSM”) and Directive no. 2004/35/CE for environment responsibility („DRM”).

The Scope of the Mining Waste Directive is to ensure the coverage for 1) all obligations resulting from the permit issued for the removal of the waste generated by mining works and 2) all costs related to the rehabilitation of the land affected by the waste storage. The Directive for the environment responsibility sets up the remediation activities and the measures which must be implemented by the environment authorities in case of an ecological accident due to mining operators, for the purpose of ensuring that the operators have available the appropriate financial resources for the ecological remediation works.

RMGC will comply with the legal provisions regarding the financial guarantees, which will be adopted in future, by the authorities, on the grounds of Artciel 33 of the Government Emergency Ordinance no. 2004/35/CE on the environment responsibility, the prevention and rehabilitation of the damage brought to the environment and Article 50 of the Government Decision no. 856/2008 implementing the Directive 2006/21/CE on the mine waste management and amending of the Directive 2004/35/CE.

The current closure costs for Roşia Montană are 135 million USD, calculated for the mine operation life of 16 years. The annual updates will be established by independent experts, in liaison with ANRM, in the quality of competent governmental authority in the field of mining operations. The updates ensure that, in the case of very unlikely early closure of the project, and at any time, EFG always reflects the costs needed for the ecological rehabilitation. (These annual updates will result in an estimate value which exceeds the current closure cost of 135 million USD, because the usual operation of the mine includes certain ecological rehabilitation works).

The annual updates include four viable elements:

• Changes brought to the project and which affect the objectives of ecological rehabilitation; • Changes of the legislation in Romania, including the implementation of the UE Directives; • New technologies which improve the methods and practices for ecological rehabilitation; • Changes of the price for certain key products and services needed for the ecological rehabilitation.

Once these updates are completed, the new estimate costs for closure works will be included in the financial statements of RMGC and will be disclosed.

According to the law, several financial tools are available for ensuring that RMGC is capable to cover all the closure costs, so that the Romanian Authorities don’t have any financial responsibility concerning the environment rehabilitation due to Roşia Montană Project.

The TMF design criteria involve a number of extra safety measures, in addition to the ones characterizing most similar facilities in the world. As a result, the TMF is an extremely robust and safe structure, with an extremely low risk of failure.

The centerline method of construction and the pervious dam design concept (subchapter 3.2.5.5) increase the dam’s stability and safety level. In the light of all these, risks have been assessed and potential accident scenarios have been imagined, including an assessment of the seriousness of the potential consequences.

Compared to other tailings dams in the world, where accidents have happened, the proposed TMF on the Corna Valley is much more robust and has various safety elements. Unlike many other similar structures in the world, the tailings dam will be semi permeable, which will ensure the reduction of water content in the tailings slurry.

Based on the criteria previously mentioned, the dam has been designed to withstand an earthquake measuring 8 on the Richter scale. No such event has ever been experienced on the Romanian territory and it is hard to imagine the mechanism that could cause such an event in

Page of answer 2 of 6 Pagina 144 din 206 the future.

The main design elements that ensure the dam’s increased safety include the following:

• the dam has been designed to retain water resulting from 2 PMP • with each dam rise, a spillway will be constructed to discharge, in a controlled way, the excess water resulting from a potential extreme event. This will eliminate the potential for erosion of the downstream slopes; • the rockfill starter dam has an impervious core and an embankment slope measuring 2H:1V downstream and 1.75H:1V upstream; • The main TMF dam will be constructed using the centerline and downstream construction method. The downstream slopes will measure 3H: 1V. Usually, the slopes for such hydrotechnical structures range between 1.5H:1V and 1.75H:1V; • a drainage system is planned at the bottom of the waste rock dump to reduce water levels in the waste materials ; • a monitoring system set up on the dam’s crest or on its vicinity, to provide timely information regarding potential instability situations, excessive rise of the groundwater in the dam body, excessive increase of the water volume stored in the decant pond. • implementation of a strict Quality Assurance program, during the entire construction period.

The design of the Project includes the stipulation that the storage of the tailings will be done by making sure the permanent moisture of the tailings dam is maintained, thus avoiding the possibility of occurrence of dry surfaces. As a result, the effect of the wind erosion of these surfaces and the emission of particles will be removed.

The operational measures to prevent the emission of particles provide:

• Permanent monitoring of the tailings management facility’s condition in order to prevent the occurrence of dry surfaces during the droughty or of very high temperature; • Humidify the areas and improve the tailings storage systems.

The tailings management facility will be covered and rehabilitated (by means of vegetation) right after the mining activities are shut down.

Please note that the Roşia Montană tailings management facility will be a valley dam; its lateral embankments are natural slopes bordering the Corna Valley. The dam will be built of rocks. Thus, the tailings management facility could be identified to a lake to be filled gradually. Potential dry tailings areas could occur only on the horizontal, uncovered surface of the tailings dam. Before the dam is completely filled, the embankments will represent physical obstacles which will prevent the dispersion of the particles carried by the wind from potentially dry surface onto the neighboring areas.

The incidental or short time potential dust dispersion can only affect the air quality within the areas neighboring the tailings management facility, at distance of few hundred meters at the most, meaning the industrial perimeter.

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was

Page of answer 3 of 6 Pagina 145 din 206 forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training

Page of answer 4 of 6 Pagina 146 din 206 (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

Page of answer 5 of 6 Pagina 147 din 206

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

Page of answer 6 of 6 Pagina 148 din 206

Item no. 41

Stakeholder Armeana Gheorghe name

Stakeholder Bucium address Observations: - Shall this Project assist from financial point of view the Bucium Commune? - How hazardous are the cyanides used at Rosia Montana? What is the impact on Bucium? - When the mine is expected to be launched? Question/ - Will the locals from Bucium have jobs at the Project? When and where are the job applications Comment being submitted? - The Project impacts the water supply system of Bucium Commune - the sources are from Project area (the slope towards Corna Valley)?

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the Answer locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on

Page of answer 1 of 7 Pagina 149 din 206 sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems;

Page of answer 2 of 7 Pagina 150 din 206 • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

The most efficient and economic process for extracting the gold and silver from the ores is the type which will be used in Roşia Montană; this is based on full cyanide leaching of the ore mass. There are numerous examples in the world, of similar ores, which require the need of using cyanide technology for effectively extracting the precious metals. The implementation of the cyanide technology for gold and silver recovery from Roşia Montană ore is sustained by a detail testing program conducted by AMMTEC Limited and AMDEL Limited. The tests were scheduled and supervised by GRD MINPROC Limited, and the findings of the testing program were checked and reconfirmed by S.N.C. LAVALIN şi AUSENCO. The design of the cyanide leaching technology for the ore from Roşia Montană took into consideration the best practices used at European level and everywhere else in the world. The metal recovery technology using cyanide leaching through CIL is BAT (The Best available techniques (as per Chapter 3.1.6.2.2 and

Page of answer 3 of 7 Pagina 151 din 206 Chapter 5.2 of the BREF Guidelines [1] EU Document on BAT for Management […] in Mining Activities, March 2004).

The cyanide will be delivered in solid state, within special designed and built ISO containers. The cyanide will be dissolved straight into the transportation containers, in an alkaline solution, resulted from and re-circulated within a mixing tank. The mixing tank is designed so it can contain the full capacity of a transportation container. After dissolving the entire quantity of cyanide from a container, it will be then transferred from the mixing tank, into a big capacity storage tank.

The grinded ore, resulted from the overflow of the ball mill hydro-cyclones, is transferred to the container of the pump which feeds the CIL circuit, where it is mixed with cyanide and lime, needed to adjust the value of pH. The active carbon is added to the CIL tanks for facilitating the leaching process and the absorption of the dissolved metals.

The slurry goes through a leaching process consisting of two parallel alignments of 7 CIL tanks each, equipped with agitators. The size of a CIL tank is D = 18 m x H = 20 m. The size is designed so that enough time of contact between the cyanide solution, grinded ore mass and active carbon is ensured. Provided the needs, sodium cyanide solution is added to CIL tanks no. 2 and 4 of each alignment, so that the necessary cyanide concentration is sustained within the circuit. The slurry is circulated within the hydro-gravitational cyanide leaching circuit, and the carbon advances continuously in counter-flow of the slurry, pushed by vertical pumps. The time from one tank to another is adjusted for ensuring a gold and silver load in the carbon of 7000 to 8000 g/t.

The mixing of the slurry with flocculants which support the settlement of solids, takes place in the thickener. The thickener (tank) ensures the growth of the solid content in the sediment, as well as the relatively clarified water with cyanide content. This water, discharged from the thickener, will be directed towards the grinding circuit, for reusing and recovering the cyanide.

The thickened slurry is pumped towards the cyanide detoxification circuit, which works on SO2/air process, where the concentration of weak acid dissociable cyanide (WAD) from the slurry will decrease under the standard of Romania legislation and EU Directive. The management of the processing tailings and the detoxification technology are BAT techniques, according to the Chapter 3.1.6.3, 3.1.6.3.2 and 4.3.11.8 (EU Guiding Document on BAT for Management ... in Mining Activities, March 2004). The detoxified slurry will be pumped to the tailings dam.

The cyanide used during the processing phase will be handled/stored in accordance with the EU standards and the provisions of the International Cyanide Management Code (ICMC- www.cyanidecode.org ), and safely kept on the processing plant site, to avoid any potential leakage. The cyanide and its compounds will undergo the INCO detoxification (DETOX) which is considered The Best Available Technique (BAT- best available technique), according to BREF document, and the processing tailings will be pumped to the tailings management facility in accordance with the Governmental Decision no. 856/2008 regarding the management of the waste generated by extractive industries, which implements the provisions of the EU Directive 2006/21/CE on the management of waste generated from extractive industries.

Most part of the cyanide will be recovered in the processing plant.

The only source of process residual water of the Project is the detoxified tailings. The concentration of residual cyanide contained by treated slurry will have to comply with the EU Directive 2006/21/CE regarding the mining waste – maximum value of 10 ppm CNWAD (weak acid dissociable).

The model run for the predictable concentrations within the tailings dam proved that the tailings slurry is expected to contain 2 – 7 ppm WAD cyanide. Through further degradation, the concentrations will lower up to values below the standards set for surface waters (0.1 mg/l) in 1-3 years from closure. A side effect of this treatment is also the removal of many metals which could appear in the flow of industrial used waters.

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After settling, the water is re-circulated back into the process; several processes take place in the dam during stationary time: natural cyanide degradation / decay, hydrolyze, volatilization, photo- oxidation, bio-oxidation, complexing / decomplexing, sediment adsorption, dilution induced by rainfalls, etc.

The data obtained from various mines during operations, show variable efficiencies for cyanide reduction (from 23-38% to 57-76% for total cyanides, and 21-42% to 71-80% for WAD cyanide) related to the season (temperatures).

There was considered an average of approx. 50% of CNt in the tailings dam during operations. After the closure of operations, as per the model run for the degradation/decay process, it is possible a reduction of the concentration even up to 0.1 mg CNt/l in the first three years.

The biggest part (90%) of the decayed cyanide quantity (the average of 50%) is done through hydrolyze/volatilization as hydrogen cyanide. The mathematic modeling of the hydrogen cyanide concentration from the tailings dam lead to a maximum hourly concentration of 382 µg/m3 in comparison to 5000 µg/m3, standard concentration for emissions set through ORDER of the Ministry of Waters, Forests and Environment Protection no. 462/1993 for the approval of Technical Conditions regarding the atmosphere protection and the Methodological Norms regarding the measuring of atmosphere pollutants generated from stationary sources, with its further completions and amendments.

SC Roşia Montană Gold Corporation SA submitted the application for the issuance of the environment permit for Roşia Montană Project, to Alba Environment Protection Agency, on December the 14th, 2004.

The documentation submitted by the Titleholder consisted of: the technical sheet, the Annex to the Urbanism Certificate, and the Presentation Memorandum of the Project, which was posted on the web site of the Ministry commencing with December the 20th, 2004.

Given the fact that the Project is subject to the provisions of the Espoo Convention regarding the environment impact assessment within transboundary context, the Ministry of Environment asked the Ministry of Foreign Affairs, through Letter no. 4596 of December 21st, 2004, to send notifications to the likely impacted countries: Hungary, Serbia and Montenegro, Bulgaria, Moldova, Ukraine, Slovakia.

Hungary confirmed its participation to the impact assessment procedure of Roşia Montană Project within transboundary context. Hungary has also sent a preliminary proposal regarding the requirements for the content of the EIA Report for Roşia Montană Project.

Bulgaria replied to the notification, saying that it won’t participate to the impact assessment procedure for Roşia Montană Project within transboundary context.

Moldova Republic replied to the notification saying that it won’t participate to the impact assessment procedure for Roşia Montană Project within transboundary context, but it asked for the EIA Report, as soon as it will be completed.

Serbia and Montenegro, Ukraine and Slovakia didn’t submit a formal response.

In April, the 14th 2005, the RMP site was visited by representatives of the Ministry of Environment and Sustainable Development, Sibiu Regional Environment Protection Agency, Alba Environment Protection Agency and the Titleholder. The site visit was concluded with a report and followed by filling out the Check List according to the legislation in force.

In May, the 10th 2005, there was the Technical Analysis Committee (TAC) at central level for ranking and defining the assessment domain. The TAC (formed by representatives of the Romanian Academy, Ministry of Economy and Commerce, Ministry of Internal Affairs, Ministry of Health, Ministry of Transportation and Infrastructure, Ministry of European Integration, Ministry of

Page of answer 5 of 7 Pagina 153 din 206 Cultures and Cults, National Agency for Mineral Resources, National Administration of Romanian Waters) established the issues which need to be addressed within the EIA Report. In addition to the issues identified by the Romanian Institutions represented within this Committee, RMGC addressed the issues requested by the Environment Authorities from Hungary.

The EIA Report was issued by certified entities based on the Compliance list for defining the assessment domain, the additional questions addressed by the TAC institutions and the proposals of the likely impacted countries, in accordance with the legislation in force.

• The EIA Report was subject to public debates during July the 24th 2006, to August the th 25 , 2006, in 14 different towns from Romania (Roşia Montană, Abrud, Câmpeni, Alba Iulia, Zlatna, Brad, Cluj-Napoca, Turda, Bistra, Baia de Aries, Lupsa, Bucuresti, Deva, Arad); • Two public debates were held in Hungary, at Szeged and Budapest, as a result of the participation of Hungary in the EIA procedure for RMP within transboundary context; • The Ministry of Environment reviewed the results of the public debates, assessed the proposals / comments issued in reason by the stakeholders and will ask the Titleholder to complete the EIA Report with an Annex comprising solutions to the issues raised.

In January the 31st, 2007, the Ministry of Environment transmitted to the Project’s Titleholder, SC Roşia Montană Gold Corporation SA, the Form comprising the observations and the comments received from the stakeholders during the public debate phase.

In May the 4th, 2007, The Project’s titleholder submitted its response to the Ministry of Environment in relation to the observations and comments addressed by the stakeholders. This response represents the Annex to the EIA Report;

The Ministry of Environment forwarded the Annex, in electronic format – CD – to the stakeholders which addressed the observations and comments.

The Technical Analysis Committee convened at central level in June the 26th 2007, July the 10th 2007, July the 19th 2007 and August the 9th 2007. 4 Chapters of the EIA Report were reviewed, namely:

• Chapter 1 – General provisions • Chapter 2 – Technological processes • Chapter 3 - Waste • Chapter 4 – Potential environment impact, including the transboundary impact, and related mitigation measures, without the subchapter referring to the cultural and ethnical baseline conditions and cultural heritage (8 subchapters).

In September the 12th 2007, the Ministry of Environment suspended the EIA review procedure due to the cancellation of the Urbanism Certificate no. 105 / 2007.

RMGC challenged the decision of having the environment integrated permitting procedure suspended, suing the Ministry of Environment and its representatives through the Court Introductory Application which forms the Scope of the file no. 8037/2/2007 pending with the Appeal Court of Bucharest – department of Administrative and Fiscal Litigation, ongoing. S.C. Roşia Montană Gold Corporation S.A. follows all the necessary requirements to have this procedure recommenced, awaiting for the continuation of the review on the EIA Report by the TAC which has to be convened by the Ministry of Environment, according to the law.

Consequently, the gold ore mining is mainly dependent on the status of the Project’s permitting and especially on obtaining the environmental permit.

The adjacent valleys are not threatened by groundwater seepage. The Hydrogeology Baseline Report – based on the results of monitoring water levels in piezometers within the base of the Corna Valley as well as piezometers on the sides of the Corna Valley – indicates that

Page of answer 6 of 7 Pagina 154 din 206 groundwater contours are above the 840 meter level, which is the maximum height of the Tailings Management Facility (TMF) embankment. The piezometeric data indicate that groundwater flow is from a groundwater divide near the tops of the ridges to the valley bottoms. There is no evidence that groundwater flow occurs through the ridges to adjacent valleys, and no such conditions will develop as the TMF is constructed that will result in flow through the ridges.

The design of the TMF basin includes a low permeability soil liner, compacted as needed – to meet a permeability specification of 1x10-6 cm/sec which conforms with the EU Directive on using Best Available Techniques (BAT) as defined in EU Directive 96/61/EC (IPPC) – a cut-off wall within the foundation of the starter dam to control seepage, a low permeability core for the starter dam to control seepage and a seepage collection dam and pond below the toe of the tailings dam to collect and contain any seepage that extends beyond the dam centerline.

The job applications can be submitted at the Human Resources Office, located at the ground floor of the building from Rosia Square.

By the time of employment resumption, all vacancy announcements will be public. All enrolled candidates which will present the complete file, by the time that the interview will take place, will be able to participate to the job contest. The locals of Roşia Montană shall have priority during employment under the same level of professional experience and skills.

Everyone can participate at the recruitment interview, in equal conditions with other applicants. The recruiters will have to comply with the requirements provided by the recruitment announcements.

At the employment, priority is given to people having no job and therefore no social protection, if they comply with the requirements for the job. RMGC indicates that all employments will be done in accordance with the previsions stipulated in GO no. 137/2000 regarding the prevention and penalty of all discrimination forms, in order to make sure that equal opportunity is granted to all people that don’t benefit from the social protection in comparison with the other persons, group of individuals or communities.

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Item no. 42

Stakeholder David Viorel name

Stakeholder Bucium Sat address Engineer, son of a miner - he knows from his experience all the hills, all explorations and all mining aspects.

Observations: - He participated in several meetings for this Project. The uprightness of the management of RMGC, the professionalism reflecting on company's Projects that include the latest technologies and the most recent technical data. The entire management of RMGC has been the mother and Question/ the father of the commune, of the children and of the elders. He thanks them and he awaits the Comment launch of the Project. He trusts that the new government shall raise the barrier for RMGC.

Questions: - The life of the mine? - Average number of personnel? - Labour productivity?

Taking into consideration the geological research period of approx. 5 years (between 1998- 2003), followed by a development period of approx. 6 years, then the construction of the project of approx. 2 years, operations period estimated for 16 years, plus approx. 5-7 years for closure, sums up to approx. 35 years of development and closure of the mine. In addition to this period, we add at least 30-50 years of post-closure monitoring of the environment.

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social Answer assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this

Page of answer 1 of 5 Pagina 156 din 206 qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure;

Page of answer 2 of 5 Pagina 157 din 206 • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

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RMGC assessed several viable production rates for the Project in order to identify the optimum production of the processing plant. These studies took into consideration the life time of the mine, the capacity of the facilities, the equipments, labour, water and other factors. In addition, the costs for mining, processing and costs of the infrastructure were established for assessing the economic efficiency of the Project for various production options. The results of these studies show that the Project will start reaching the key financial profitability criteria at over 6 Mt/annum and that the efficiency improves almost when reaching the maximum production of approx. 20 Mt/annum. But the investment expenditure increases in parallel with the increase of the production rate. Giving consideration to all these factors, it was established that the optimum rate for ore feeding of the Roşia Montană Project is 13 Mt/annum.

A rate of productivity lower than 8 Mt/annum would probably determine the following:

• extension of the mine life; • reduction of the initial costs for mining and processing equipment; • decrease of the materials’ supply; • reduction of the staff; • decrease of the daily average water need; and • increase of the total costs.

A rate of productivity higher than 20 Mt/annum, would probably determine the following:

• reduction of the mine life; • increase of the initial costs for mining and processing equipment; • increase of the need for materials; • increase of the staff; • increase of the daily average water volume; and • increase of the total costs.

The productivity of 13 Mt/annum was used to design the pits and the processing equipment. The design of the pits optimized the quantity and the content of the mined ore, in accordance to an appropriate schedule of works during the entire life of the mine.

The duration of the useful life of the mine is currently designed for approx. 16 years, starting with the pre-production phase which will last less than one year. The mining itself will only last for the first 14 years. For the other 2 years, the company will process low quality ore, stored in the waste dump. The increase or decrease of the production rate will extend or shorten the life of the Project accordingly. The environment impact corresponding to the three alternative production scenarios is presented below in a comparative table:

Production alternative Environment 8 Mt/annum 20 Mt/annum 13 mMt/annum (our choise) Water flow and All alternatives allow the remediation of the existing pollution problem; the final remediation will happen, the quickest, for quality the 20 Mt/a option. Air quality In general, the minimun level of In general, the maximum legel of Optimum option in terms of level of emission, but for a longer period of emission, but for a shorter period of time emissions and duration time

The level of emission for ALL options will be compliant with the regulations and guidelines in force Noise and Noise and vibration emissions, as in the atmospheric emissions. vibrations

Soil All alternatives regarding the production will assume the same land occupancy and modification of the habitats and relief, therefore the impact would be similar. Biodiversity Landscape

Page of answer 4 of 5 Pagina 159 din 206 Socio-economic The lower rate of employment, The highest rate of employment, but for Optimum rate of employment in aspects which would offer less jobs, but on a shorter term, which would increase the relation to the number of jobs and longer term potential of economic „crah” duration. Cultural heritage Similar occupation of the land, thus similar impact on the environment. Transportation The impact on roads and transport systems will be basically proportional with the production rate. A bigger production will generate intense traffic on site, but for a shorter period of time, and vice versa. Transboundary All alternatives will include the remediation of the existing pollution, resulting in a mitigation of the pollutant loading which impact eventually could affect the water quality of the neighboring countries; all options are safe and sound during normal or uncommon operation conditions.

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Item no. 43

Stakeholder Danciu Radu name

Stakeholder Bucium Cerbu address Questions that he prepared for this meeting have already been asked. He supports the project. Question/ What is the current stage of the Project? Comment SC Roşia Montană Gold Corporation SA submitted the application for the issuance of the environment permit for Roşia Montană Project, to Alba Environment Protection Agency, on December the 14th, 2004.

The documentation submitted by the Titleholder consisted of: the technical sheet, the Annex to the Urbanism Certificate, and the Presentation Memorandum of the Project, which was posted on the web site of the Ministry commencing with December the 20th, 2004.

Given the fact that the Project is subject to the provisions of the Espoo Convention regarding the environment impact assessment within transboundary context, the Ministry of Environment asked the Ministry of Foreign Affairs, through Letter no. 4596 of December 21st, 2004, to send notifications to the likely impacted countries: Hungary, Serbia and Montenegro, Bulgaria, Moldova, Ukraine, Slovakia.

Hungary confirmed its participation to the impact assessment procedure of Roşia Montană Project within transboundary context. Hungary has also sent a preliminary proposal regarding the requirements for the content of the EIA Report for Roşia Montană Project.

Bulgaria replied to the notification, saying that it won’t participate to the impact assessment procedure for Roşia Montană Project within transboundary context.

Moldova Republic replied to the notification saying that it won’t participate to the impact Answer assessment procedure for Roşia Montană Project within transboundary context, but it asked for the EIA Report, as soon as it will be completed.

Serbia and Montenegro, Ukraine and Slovakia didn’t submit a formal response.

In April, the 14th 2005, the RMP site was visited by representatives of the Ministry of Environment and Sustainable Development, Sibiu Regional Environment Protection Agency, Alba Environment Protection Agency and the Titleholder. The site visit was concluded with a report and followed by filling out the Check List according to the legislation in force.

In May, the 10th 2005, there was the Technical Analysis Committee (TAC) at central level for ranking and defining the assessment domain. The TAC (formed by representatives of the Romanian Academy, Ministry of Economy and Commerce, Ministry of Internal Affairs, Ministry of Health, Ministry of Transportation and Infrastructure, Ministry of European Integration, Ministry of Cultures and Cults, National Agency for Mineral Resources, National Administration of Romanian Waters) established the issues which need to be addressed within the EIA Report. In addition to the issues identified by the Romanian Institutions represented within this Committee, RMGC addressed the issues requested by the Environment Authorities from Hungary.

The EIA Report was issued by certified entities based on the Compliance list for defining the assessment domain, the additional questions addressed by the TAC institutions and the proposals of the likely impacted countries, in accordance with the legislation in force.

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• The EIA Report was subject to public debates during July the 24th 2006, to August the th 25 , 2006, in 14 different towns from Romania (Roşia Montană, Abrud, Câmpeni, Alba Iulia, Zlatna, Brad, Cluj-Napoca, Turda, Bistra, Baia de Aries, Lupsa, Bucuresti, Deva, Arad); • Two public debates were held in Hungary, at Szeged and Budapest, as a result of the participation of Hungary in the EIA procedure for RMP within transboundary context; • The Ministry of Environment reviewed the results of the public debates, assessed the proposals / comments issued in reason by the stakeholders and will ask the Titleholder to complete the EIA Report with an Annex comprising solutions to the issues raised.

In January the 31st, 2007, the Ministry of Environment transmitted to the Project’s Titleholder, SC Roşia Montană Gold Corporation SA, the Form comprising the observations and the comments received from the stakeholders during the public debate phase.

In May the 4th, 2007, The Project’s titleholder submitted its response to the Ministry of Environment in relation to the observations and comments addressed by the stakeholders. This response represents the Annex to the EIA Report;

The Ministry of Environment forwarded the Annex, in electronic format – CD – to the stakeholders which addressed the observations and comments.

The Technical Analysis Committee convened at central level in June the 26th 2007, July the 10th 2007, July the 19th 2007 and August the 9th 2007. 4 Chapters of the EIA Report were reviewed, namely:

• Chapter 1 – General provisions • Chapter 2 – Technological processes • Chapter 3 - Waste • Chapter 4 – Potential environment impact, including the transboundary impact, and related mitigation measures, without the subchapter referring to the cultural and ethnical baseline conditions and cultural heritage (8 subchapters).

In September the 12th 2007, the Ministry of Environment suspended the EIA review procedure due to the cancellation of the Urbanism Certificate no. 105 / 2007.

RMGC challenged the decision of having the environment integrated permitting procedure suspended, suing the Ministry of Environment and its representatives through the Court Introductory Application which forms the Scope of the file no. 8037/2/2007 pending with the Appeal Court of Bucharest – department of Administrative and Fiscal Litigation, ongoing. S.C. Roşia Montană Gold Corporation S.A. follows all the necessary requirements to have this procedure recommenced, awaiting for the continuation of the review on the EIA Report by the TAC which has to be convened by the Ministry of Environment, according to the law.

Consequently, the gold ore mining is mainly dependent on the status of the Project’s permitting and especially on obtaining the environmental permit.

The other permitting procedures run in parallel. Theere are certain procedures which we could run in parallel, for others we have to wait for the receipt of the environmental permit, therefore we need 6 months to 1 year for obtaining the necessary permits and endorsements.

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Item no. 44

Stakeholder Cosma Gheorghe name

Stakeholder Abrud, Str. Aleea Parcului, Bl. M, Sc. 2, Ap. 21 address Observations: - The public meeting is welcomed for this plan. It is critical that for this PUZ the community components are also discussed and especially the Bucium commune is consulted. Moreover, Question/ Bucium Project is expected. To date, the company has demonstrated its seriousness through its Comment actions: a new quarter has been built in Alba, and the construction of new centre in Piatra Alba has been initiated.

RMGC carried out geological research works in order to identify and mark out the recoverable ore deposits, giving consideration to the economic efficiency of them; the works are based on the Exploration License owned for Bucium perimeter.

In accordance to Article 17(1), 18(2) letter a) and 20 of the Mining Law no. 85/2003, RMGC put together a feasibility study and other documentations for obtaining the mining license. These documentations were issued by S.C. Ipromin S.A. and were submitted for review and approval to Answer the National Agency for Mineral Resources.

If the mining license for Bucium perimeter is obtained and the decision to develop this perimeter is approved, then the requirement will be for a permitting process for this mining project, including an environment permit and environment impact assessment procedure, and public participation according to the legal provisions in force.

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Item no. 45

Stakeholder Oprişa Ştefan name

Stakeholder Membru Fondator Pro Dreptatea address He thanks RMGC for their patience in relation with the political factors and for the benefits Question/ brought to the community. Comment This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local Answer community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Page of answer 1 of 3 Pagina 164 din 206

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc.

Page of answer 2 of 3 Pagina 165 din 206 • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

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Item no. 46

Stakeholder Mignea Iosif Dorin name

Stakeholder Abrud, Str. 1 Mai, Nr. 17 address Issues like acid waters, noise, dust in the area, are well known from the previous mining operations, the education given to children took this aspect into account. He is firmly convinced that if the Rosia Montana gold did not exist, the current communities would not be developed. With respect to the dam and the TMF, there are certain elder people in the area who know the technical aspects regarding its safety and the lack of risk for the Abrud community. He agrees Question/ with the NGOs who want to protect their interests, but they have to function in a constructive Comment manner. They do not want pollution in the area but they want to live as well as possible, but in the current situation of Abrud, this cannot be accomplished anymore. The Project offers a chance to the future generation. He asks RMGC to stay on the track and continue their projects, and keep their promises. He appeals to the authorities to have the capacity to make decisions in such a manner that the communities in the area will not suffer.

The technological process presented in the Roşia Montană project generate two sources of metal loaded ARD:

• ARD, important source as far as flows and metallic ions concentrations are concerned; • Tailings slurry resulting from the processing of ore using cyanides.

1. For mine waters, there’s a water collection and abstraction system (in the ARD dam Cetate and seepage retention dam Cârnic), monitoring and treatment in a specially designed installation, anticipated to be developed during the construction phase of the project.

Treatment will be performed in compliance with BAT, with a large application by pH adjustment and metal precipitation in two steps using lime and carbon dioxide as insoluble compounds (hydroxides, carbonates, hydroxycarbonate).

The treated effluent will be partially reutilized in the process, after the first precipitation stage, therefore it will not get dispersed into the environment, and the final effluent that will comply with the NTPA 001 limits for metals, will be used to maintain environmental baseflows in Roşia and Answer Corna Streams.

The slurry will be directed to the TMF.

The installation is conceived to function during the operation, closure and post-closure stages of the Roşia Montană Project.

During the last three years of the operation period, the passive treatment processes will be tested in the lagoons.

These will replace the ARD active treatment plants in the post-closure period, should the result be satisfactory and the NTPA 001 discharge standards will be complied with.

2. INCO process (oxidation with SO2/air) and lime pH 8-10, for treatment of tailings slurry is mainly used for the destruction of cyanides.

Concomitantly, given the above conditions, precipitation of heavy metals as hydroxides takes place – Me(OH)2 or insoluble cyanic complexes with insoluble Fe – Me2Fe(CN)6.

Page of answer 1 of 8 Pagina 167 din 206 Treated slurry is discharged into the TMF, and after settling, water is recirculated in the process. The seepage from the TMF are collected in the secondary dam sump and is recirculated in the decant pond. As per the water flow described in the Project, on this route, there are no metal- loaded waters discharged into the environment, during normal operation stage.

Under abnormal operation conditions, when the storage capacity designed for the pond is exceeded, (>2 PMP successive) and if the natural dilution taking place in such extreme situation – does not provide the quality conditions requested by NTPA 001, the project provides a treatment plant for low cyanide content waters where precipitation of metals will be performed.

In conclusion, the Roşia Montană project provides realistic technical solutions to avoid metal pollution risks.

Atmospheric pollutants occur everywhere in the ambient air, with less or higher concentrations, their emission sources being both anthropic (human activities) and natural.

As regards the atmospheric pollutants generated by the mining activities proposed by Roşia Montană Project, we specify that the area from the vicinity of the industrial perimeter, although relatively close to industrial site, is a part of its external areas and is exposed at the lowest extent to these pollutants. The sole pollutant which could influence, at a certain extent, the air quality from area is represented by particles. The Maximum concentrations of particles in the air neighboring the industrial perimeter will be of 4 up to more than 20 times lower than the standard value for the protection of the population’s health. The concentrations of other pollutants to be generated by future mining activities in the area neighboring the industrial perimeter will be insignificant.

It is mentioned that any locality, irrespective of the existence of industrial activity, the quality of the air is given by the local sources inherent for day-to-day life of the residents, namely: heating, cooking, traffic, etc.

The levels of pollution by particles of the air neighboring the industrial perimeter, due to the effect of the local sources together with the future mining activities, will be lower than the limit values for population’s health protection.

The atmospheric dispersion modeling has been performed using the best available techniques in order to simulate the transport of the pollutants generated by the mining activities outside the Project area. AERMOD incorporates through a new and simple approach the current concepts regarding flow and dispersion in complex terrains. If needed, the plume is modeled either with a trajectory impacting the terrain or with a trajectory following the terrain topography.

AERMOD may forecast concentrations of pollutants from multiple sources for a wide variety of sites, meteorological conditions, types of pollutants and mediation periods. For this project, the concentrations on short term have been calculated using the maximum hourly rates of emission for activities developed simultaneously and for the averages calculated for intervals of 1 hour, 8 hours and 24 hours. The annual concentrations have been calculated using all active sources during the respective year.

For the dust emission control from open pits and haulage roads of ore and waste rock, the following measures have been taken:

• Utilization of a new blasting technology, namely the sequential blasting technology which reduces drastically the height of the dust plume and dispersion area; • Ceasing of the activities generating dust during the periods with intense winds or when the automatic monitor for particles installed in the Roşia Montană protection area indicates an alert situation; • Implementation of a program for dust control on the unpaved roads during the drought seasons by means of watering trucks and inert substances for dust restraining. These measures will reduce the dust emissions with 90%; • Minimizing of the unloading height at manipulation/discharge of materials; • Prescribing and applying speed limits for traffic;

Page of answer 2 of 8 Pagina 168 din 206 • Implementation of a program of periodically maintenance of vehicles and motorized equipments; • Automatic monitoring of the air quality and meteorological parameters; • Implementation of additional measures for dust emission control: ore and waste rock watering at the loading into trucks.

The noise and vibration management plan, Air quality management plan as well as the other management plans propose measures which proved their efficiency in similar projects and maintain the parameters of noise and vibration phenomena as well as the air quality within normal limits. These plans provide also the monitoring system of these parameters which will be implemented by the project as well as the potential proposed measures for their mitigation.

The blasting activities in open pits as well as the displacement of heavy equipments are allowed only if the parameters of the generated vibrations are maintained within the limits imposed by legislation.

The EIA study presents the admissible maximum limits regarding the security of buildings and the procedures keeping the vibration parameters within these limits. The pertinent blasting designs combined with blasting tests and step by step optimization corrections as well as the utilization of specific control and prevention measures and actions will assure the vibration, noise and dust parameters below the admissible limits.

Heavy equipments may produce ground vibrations. For this reason the measures stipulate roads design at great enough distances so that the vibrations will imply low amplitudes. Also, the transport speed in critical areas is reduced so that the vibration parameters will have values below the admissible limits stipulated by the standards in force for residential areas.

The storage of the tailings will be done by making sure the permanent humidity of the tailings dam is maintained, so avoiding the possibility of occurrence of dry surfaces. As a result, the effect of the wind erosion of these surfaces and the emission of particles will be removed.

The operational measures to prevent the emission of particles provide:

• Permanent monitoring of the tailings management facility’s condition in order to prevent the occurrence of dry surfaces during the droughty or of very high temperature; • Wetting areas and improve the tailings storage systems.

The tailings management facility will be covered and rehabilitated (by means of vegetation) right after the mine operations are ceased.

Please note that the Roşia Montană tailings management facility will be a valley dam; its lateral embankments are natural slopes bordering the Corna Valley. The dam will be built of rocks. Thus, the tailings management facility could be identified to a lake to be filled gradually. Potential dry tailings areas could occur only on the horizontal, uncovered surface of the tailings dam. Before the dam is completely filled, the embankments will represent physical obstacles which will prevent the dispersion of the particles carried by the wind from potentially dry surface onto the neighboring areas.

The incidental or short time potential dust dispersion can only affect the air quality within the areas neighboring the tailings management facility, at distance of few hundred meters at the most, meaning the industrial perimeter.

The TMF design criteria involve a number of extra safety measures, in addition to the ones characterizing most similar facilities in the world. As a result, the TMF is an extremely robust and safe structure, with an extremely low risk of failure.

The centerline method of construction and the pervious dam design concept (subchapter 3.2.5.5) increase the dam’s stability and safety level.

Compared to other tailings dams in the world, where accidents have happened, the proposed

Page of answer 3 of 8 Pagina 169 din 206 TMF on the Corna Valley is much more robust and has various safety elements. Unlike many other similar structures in the world, the tailings dam will be semi permeable, which will ensure the reduction of water content in the tailings slurry.

Based on the criteria previously mentioned, the dam has been designed to withstand an earthquake measuring 8 on the Richter scale. No such event has ever been experienced on the Romanian territory and it is hard to imagine the mechanism that could cause such an event in the future.

The main design elements that ensure the dam’s increased safety include the following:

• the dam has been designed to retain water resulting from 2 PMP • with each dam rise, a spillway will be constructed to discharge, in a controlled way, the excess water resulting from a potential extreme event. This will eliminate the potential for erosion of the downstream slopes; • the rockfill starter dam has an impervious core and an embankment slope measuring 2H:1V downstream and 1.75H:1V upstream; • The main TMF dam will be constructed using the centerline and downstream construction method. The downstream slopes will measure 3H: 1V. Usually, the slopes for such hydrotechnical structures range between 1.5H:1V and 1.75H:1V; • a drainage system is planned at the bottom of the waste rock dump to reduce water levels in the waste materials ; • a monitoring system set up on the dam’s crest or on its vicinity, to provide timely information regarding potential instability situations, excessive rise of the groundwater in the dam body, excessive increase of the water volume stored in the decant pond. • implementation of a strict Quality Assurance program, during the entire construction period.

The results of the environment assessment conducted on the potential remaining effects (after implementing the prevention/mitigation measures) of the Plan, including the transboundary impact, were expressed in a synthetic manner, into six impact categories which enabled us to identify the significant effects. The main results which are outlined by the quantified potential effects’ assessment of the Mining Project, subject of the assessed Plan, on each relevant environment aspect/factor, are described below:

• The population – significant positive impact, generated by the Project’s provisions of this major investment in relation to the improvement of the social and economic conditions of the community on short, medium and long term. • Waste management – neutral impact on the water and soil quality. The changing of the use for the land in Corna Valley will generate a negative impact during the construction and operation phase; this impact will considerably be diminished during the post-closure phase of the environment rehabilitation and by including blocks of land into natural fund. . • Water – neutral impact; we add here that the provisions regarding the collection and treatment of the ARD related to the previous mining works and proper management of all wastes will generate a positive quantified impact on the surface and underground waters’ quality within the entire area. • Air – insignificant negative impact, because the contribution of the operations to the pollutants’ concentration within the environment of the areas which include sensitive receivers will be very low, and the levels cumulated to the contribution of the existing sources will be well beyond the standard values. • Noise and vibrations – insignificant negative impact; due to the mitigation measures, there won’t be sound discomfort situations and neither affects on the population or the constructions through vibration. • Biodiversity, flora and fauna – negative impact during constructions and operations phase, positive impact after the closure of the activities and rehabilitation of the area. • Cultural, architectonic and archaeological heritage – significant positive impact following the works conducted by RMGC so far and the measures included in the Cultural heritage management plan.

Page of answer 4 of 8 Pagina 170 din 206 • People’s health – significant positive impact following the measures for creating modern living conditions, for improving the medical support and for ensuring that the environment quality is compliant with the legal provisions. • Road infrastructure / Transportation – significant positive impact related to road infrastructure following its upgrade and increase of the traffic safety. Neutral impact regarding the transport related to the mining project’s activities. • Landscape – insignificant negative impact, after rehabilitation and restoration of the area; the only significant negative impact, at local level, is the definitive change of the landscape. • Soil/Use of land – neutral impact, due to the impact prevention/mitigation measures. • Material values – positive impact, following the use of local resources and purchase of the properties based on mutual advantageous transactions. Significant positive impact, following the high recovery efficiency of the precious metal from the ore. • Climate – insignificant negative impact; we add here that the gas emission sources which have a greenhouse effect will disappear after the closure of the operations. • Transboundary – the only significant transboundary impact could be the pollution of surface waters following the failure of the tailings dam. The assessment of the transboundary residual impact on the surface waters related to the failure of the tailings dam from Corna Valley may be ranked as neutral.

For detail information please see Chapters 6 and 7 of the Environment Report for the Amendment of the Urbanism Plan for Roşia Montană Industrial Zone.

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

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Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

Page of answer 6 of 8 Pagina 172 din 206 • Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

Following the questions received during the public consultations held in 2006, a very large set of answers resulted which were structured in volumes. Volume 53 – Roşia Montană, Sustainable Development of the Community, presents 17 partnerships which we propose to the community. Some already exist, with your support, some are only proposals. One of the partnerships is named Watch Partnership.

Its role is to make sure that Roşia Montană Project is developed in accordance with the national, European and international standards, with the commitments assumed during the EIA process for Roşia Montană Project. This is aimed at both NGOs and authorities. It is not materialized

Page of answer 7 of 8 Pagina 173 din 206 yet, but it is a good idea which we would like to implement. Of course, this can only happen with your help and with the help of stakeholders.

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Item no. 47

Stakeholder Cosma Gheorghe name

Stakeholder Abrud, Str. Aleea Parcului, Bl. M, Sc. 2, Ap. 21 address He worked in the mining industry, Baia de Aries inclusively. At Baia de Aries, cyanide was used for the production process but with different safety norms. RMGC Project presents measures so as not to have negative effects generated by cyanide, which is highly toxic. There are Question/ supplementary measures. Regarding the hazard of a Corna Valley dam breach, he considers Comment that RMGC initiative to present the aspects connected to its safety within the public meeting was very appropriate and beneficial measure, but he regrets the fact that there are only few citizens from Abrud present at the meeting. The best solution for the communities is the immediate launch of the Project. The most efficient and economic process for extracting the gold and silver from the ores is the type which will be used in Roşia Montană; this is based on full cyanide leaching of the ore mass. There are numerous examples in the world, of similar ores, which require the need of using cyanide technology for effectively extracting the precious metals. The implementation of the cyanide technology for gold and silver recovery from Roşia Montană ore is sustained by a detail testing program conducted by AMMTEC Limited and AMDEL Limited. The tests were scheduled and supervised by GRD MINPROC Limited, and the findings of the testing program were checked and reconfirmed by S.N.C. LAVALIN şi AUSENCO. The design of the cyanide leaching technology for the ore from Roşia Montană took into consideration the best practices used at European level and everywhere else in the world. The metal recovery technology using cyanide leaching through CIL is BAT (The Best available techniques (as per Chapter 3.1.6.2.2 and Chapter 5.2 of the BREF Guidelines [1] EU Document on BAT for Management [...] in Mining Activities, March 2004).

The cyanide will be delivered in solid state, within special designed and built ISO containers. The cyanide will be dissolved straight into the transportation containers, in an alkaline solution, resulted from and re-circulated within a mixing tank. The mixing tank is designed so it can contain the full capacity of a transportation container. After dissolving the entire quantity of cyanide from a container, it will be then transferred from the mixing tank, into a large capacity storage tank. Answer The grinded ore, resulted from the overflow of the ball mill hydro-cyclones, is transferred to the container of the pump which feeds the CIL circuit, where it is mixed with cyanide and lime, needed to adjust the value of pH. The active carbon is added to the CIL tanks for facilitating the leaching process and the absorption of the dissolved metals.

The slurry goes through a leaching process consisting of two parallel alignments of 7 CIL tanks each, equipped with agitators. The size of a CIL tank is D = 18 m x H = 20 m. The size is designed so that enough time of contact between the cyanide solution, grinded ore mass and active carbon is ensured. Provided the needs, sodium cyanide solution is added to CIL tanks no. 2 and 4 of each alignment, so that the necessary cyanide concentration is sustained within the circuit. The slurry is circulated within the hydro-gravitational cyanide leaching circuit, and the carbon advances continuously in counter-flow of the slurry, pushed by vertical pumps. The time from one tank to another is adjusted for ensuring a gold and silver load in the carbon of 7000 to 8000 g/t.

The mixing of the slurry with flocculants which support the settlement of solids, takes place in the thickener. The thickener (tank) ensures the growth of the solid content in the sediment, as well as the relatively clarified water with cyanide content. This water, discharged from the thickener, will be directed towards the grinding circuit, for reusing and recovering the cyanide.

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The thickened slurry is pumped towards the cyanide detoxification circuit, which works on SO2/air process, where the concentration of weak acid dissociable cyanide (WAD) from the slurry will decrease under the standard of Romania legislation and EU Directive. The management of the processing tailings and the detoxification technology are BAT techniques, according to the Chapter 3.1.6.3, 3.1.6.3.2 and 4.3.11.8 (EU Guideline Document on BAT for Management ... in Mining Activities, March 2004). The detoxified slurry will be pumped to the tailings dam.

The cyanide used during the processing phase will be handled/stored in accordance with the EU standards and the provisions of the International Cyanide Management Code (ICMC- www.cyanidecode.org ), and safely kept on the processing plant site, to avoid any potential leakage. The cyanide and its compounds will undergo the INCO detoxification (DETOX) which is considered The Best Available Technique (BAT- best available technique), according to BREF document, and the processing tailings will be pumped to the tailings management facility in accordance with the Governmental Decision no. 856/2008 regarding the management of the waste generated by extractive industries, which implements the provisions of the EU Directive 2006/21/CE on the management of waste generated from extractive industries.

Most part of the cyanide will be recovered in the processing plant.

The only source of process residual water of the Project is the detoxified tailings. The concentration of residual cyanide contained by treated slurry will have to comply with the EU Directive 2006/21/CE regarding the mining waste – maximum value of 10 ppm CNWAD (weak acid dissociable).

The model run for the predictable concentrations within the tailings dam proved that the tailings slurry is expected to contain 2 – 7 ppm WAD cyanide. Through further degradation, the concentrations will lower up to values below the standards set for surface waters (0.1 mg/l) in 1-3 years from closure. A side effect of this treatment is also the removal of many metals which could appear in the flow of industrial used waters.

After settling, the water is re-circulated back into the process; several processes take place in the dam during stationary time: natural cyanide degradation / decay, hydrolyze, volatilization, photo- oxidation, bio-oxidation, complexing / decomplexing, sediment adsorption, dilution caused by rainfalls, etc.

The data obtained from various mines during operations, show variable efficiencies for cyanide reduction (from 23-38% to 57-76% for total cyanides, and 21-42% to 71-80% for WAD cyanide) related to the season (temperatures).

There was considered an average of approx. 50% of CNt in the tailings dam during operations. After the closure of operations, as per the model run for the degradation/decay process, it is possible a reduction of the concentration even up to 0.1 mg CNt/l in the first three years.

The largest part (90%) of the degraded cyanide quantity (the average of 50%) is done through hydrolyze/volatilization as hydrogen cyanide. The mathematic modeling of the hydrogen cyanide concentration from the tailings dam lead to a maximum hourly concentration of 382 µg/m3 in comparison to 5000 µg/m3, standard concentration for emissions set through ORDER of the Ministry of Waters, Forests and Environment Protection no. 462/1993 for the approval of Technical Conditions regarding the atmosphere protection and the Methodological Norms regarding the measuring of atmosphere pollutants generated from stationary sources, with its further completions and amendments.

The TMF design criteria involve a number of extra safety measures, in addition to the ones characterizing most similar facilities in the world. As a result, the TMF is an extremely robust and safe structure, with an extremely low risk of failure.

The centerline method of construction and the pervious dam design concept (subchapter 3.2.5.5) increase the dam’s stability and safety level. In the light of all these, risks have been assessed and potential accident scenarios have been imagined, including an assessment of the

Page of answer 2 of 6 Pagina 176 din 206 seriousness of the potential consequences.

Compared to other tailings dams in the world, where accidents have happened, the proposed TMF on the Corna Valley is much more robust and has various safety elements. Unlike many other similar structures in the world, the tailings dam will be semi permeable, which will ensure the reduction of water content in the tailings slurry.

Based on the criteria previously mentioned, the dam has been designed to withstand an earthquake measuring 8 on the Richter scale. No such event has ever been experienced on the Romanian territory and it is hard to imagine the mechanism that could cause such an event in the future.

The main design elements that ensure the dam’s increased safety include the following:

• the dam has been designed to retain water resulting from 2 PMP • with each dam rise, a spillway will be constructed to discharge, in a controlled way, the excess water resulting from a potential extreme event. This will eliminate the potential for erosion of the downstream slopes; • the rockfill starter dam has an impervious core and an embankment slope measuring 2H:1V downstream and 1.75H:1V upstream; • The main TMF dam will be constructed using the centerline and downstream construction method. The downstream slopes will measure 3H: 1V. Usually, the slopes for such hydrotechnical structures range between 1.5H:1V and 1.75H:1V; • a drainage system is planned at the bottom of the waste rock dump to reduce water levels in the waste materials ; • a monitoring system set up on the dam’s crest or on its vicinity, to provide timely information regarding potential instability situations, excessive rise of the groundwater in the dam body, excessive increase of the water volume stored in the decant pond. • implementation of a strict Quality Assurance program, during the entire construction period.

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities

Page of answer 3 of 6 Pagina 177 din 206 that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood

Page of answer 4 of 6 Pagina 178 din 206 in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

Page of answer 5 of 6 Pagina 179 din 206

Page of answer 6 of 6 Pagina 180 din 206

Item no. 48

Stakeholder Goia Ileana name

Stakeholder Bistra, Rurde, Nr. 25 address Teacher from the area; RMGC helped at the development of many activities for the support of the educational process in the area. Tourism and agriculture do not stand for viable alternatives. Mining would change the area into one of interest also attracting other investors in the area. Question/ Comment Questions: - Will the partnerships with the schools and kindergartens continue in the area? - Will RMGC involve in other actions in order to help the youths in the area?

The company is committed to promote the long term development opportunities, as part of the sustainable development plan.

More important than a policy of donations, we would like to institutionalize the capacity of the community, so that ways for simulating projects are identified, either cultural, educational or sport and entertainment related.

We will continue to support the schools, as we have done so far through topic related programs; we will get involved in the education field, as we already have several initiatives in this regard. Some are already very advanced. We remind here about the environment partnership, about the Centre of Resources for Youth, Apuseni.

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have Answer already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities

Page of answer 1 of 4 Pagina 181 din 206 that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood

Page of answer 2 of 4 Pagina 182 din 206 in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

Page of answer 3 of 4 Pagina 183 din 206

Page of answer 4 of 4 Pagina 184 din 206

Item no. 49

Stakeholder Mateiu Augusta name

Stakeholder Abrud, Str. Mărăşeşti, Nr. 4 address Observations: - the company took into consideration the previous observations that have been made Question/ with respect to the biodiversity and she is pleased to see that. Comment - She wants to see that the people leaving from the area take their pets with them and not abandon them;

SC Roşia Montană Gold Corporation SA (RMGC) will continue to get involved in this matter. For the beginning, there will be an operational procedure specific for pets, through which we will promote the collaboration, eventual partnerships with the organizations which are involved, have the experience and conduct similar works, together with the Local Council of Abrud and Roşia Montană, and a medical-veterinary unit, in order to set up a fully equipped rendering service. This service will include the gathering of the deserted animals, sheltering, disinfestations, vaccine, eventual treatment and sterilization, and where required (serious, incurable illnesses or very aggressive) – they will be put to sleep. In addition to rendering activity, the partnership will try and promote an adoption and relocation program for these animals.

In addition to the direct and indirect benefits, Roşia Montană Project, being the major investment, will improve the economic environment of the area which, at its turn, will encourage and promote the development of economic activities which are not related to mining. It is expected that this qualitative increase of investment and economic environment to develop along with the RMP, even though the area of activities directly related to mining operation is well exceeded. The diversification of economic development is an important benefit of the investments generated through the development of RMP.

In order to fulfill its commitments, RMGC acknowledges the need of working with the community, authorities and civil society regarding the issues directly related to the development of the area.

Answer This approach enables the community to hold, orientate and control all relevant development issues, in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) agrees that, for fulfilling its commitments regarding the sustainable development process, must approach all three strength pillars of sustainable development: social, economic and environment. These elements are presented below as 5 interdependent fields, which form the key of sustainable development.

Five key components of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional

Page of answer 1 of 3 Pagina 185 din 206 levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural

Page of answer 2 of 3 Pagina 186 din 206 Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

Page of answer 3 of 3 Pagina 187 din 206

Item no. 50

Stakeholder Jurca Andrei name

Stakeholder Roşia Montană address The 2 localities Rosia Montana and Abrud have developed together from an historical point of view. He is sad due to the scarce number of Abrud citizens present at the public meeting because such a large investment would bring benefits to the area. The issue is related to the creation of jobs in the area where the unemployment rate is 85%. If this project is not implemented the area will not develop, the benefits will be present only through the development of the mining industry in the area.

Question/ Greenpeace Europe held a meeting in Cluj Napoca and at Rosia Montana where they discussed Comment aspects related to the development alternatives. Greenpeace does not have an attitude to encourage the social welfare and proposes alternatives that are not viable for this area with mining traditions. He attended to meetings organized at the Romanian Parliament where different persons expressed their opinion. He thinks that the opinions of certain parliamentarians are unsubstantiated. He supports the project and its implementation. The benefits brought by the project must be explained to the locals.

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training Answer courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the

Page of answer 1 of 3 Pagina 188 din 206 community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Page of answer 2 of 3 Pagina 189 din 206 Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

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Item no. 51

Stakeholder Moraru name

Stakeholder Abrud address Observations: - This work shall be completed in about 15 years. He studied the draft of the project, and what will be left for the locals after 15 years; that is after the Rosia Montana ore deposits have been depleted? - Who takes responsibility in such a big project for poisoning environment in front of all the Question/ citizens (Abrud, Campeni, Rosia Montana)? What do we leave to our children? Comment - He worked at Baia de Aries where they used cyanide in very low quantities, and there was no aquatic life in the waters. - The question whether the project should make smaller steps, to find the safest methods and without risks, so as that there will be something to leave behind to the future generation.

Taking into consideration the geological research period of approx. 5 years (between 1998- 2003), followed by a development period of approx. 6 years, then the construction of the project of approx. 2 years, operations period estimated for 16 years, plus approx. 5-7 years for closure, sums up to approx. 35 years of development and closure of the mine. In addition to this period, we add at least 30-50 years of post-closure monitoring of the environment.

It is important to mention that the rich part of the ore deposit was already mined during 2000 years of mining; what’s left is the low recovery content ore, therefore the low content of gold in the ore must be compensated through processing a large quantity of ore, so that to ensure an economic mine development.

The results of the environment assessment conducted on the potential remaining effects (after implementing the prevention/mitigation measures) of the Plan, including the transboundary impact, were expressed in a synthetic manner, into six impact categories which enabled us to identify the significant effects. The main results which are outlined by the quantified potential effects’ assessment of the Mining Project, subject of the assessed Plan, on each relevant environment aspect/factor, are described below:

• The population – significant positive impact, generated by the Project’s provisions of this Answer major investment in relation to the improvement of the social and economic conditions of the community on short, medium and long term. • Waste management – neutral impact on the water and soil quality. The changing of the use for the land in Corna Valley will generate a negative impact during the construction and operation phase; this impact will considerably be diminished during the post-closure phase of the environment rehabilitation and by including blocks of land into natural fund. . • Water – neutral impact; we add here that the provisions regarding the collection and treatment of the ARD related to the previous mining works and proper management of all wastes will generate a positive quantified impact on the surface and underground waters’ quality within the entire area. • Air – insignificant negative impact, because the contribution of the operations to the pollutants’ concentration within the environment of the areas which include sensitive receivers will be very low, and the levels cumulated to the contribution of the existing sources will be well beyond the standard values. • Noise and vibrations – insignificant negative impact; due to the mitigation measures, there won’t be sound discomfort situations and neither affects on the population or the constructions through vibration. • Biodiversity, flora and fauna – negative impact during constructions and operations

Page of answer 1 of 8 Pagina 191 din 206 phase, positive impact after the closure of the activities and rehabilitation of the area. • Cultural, architectonic and archaeological heritage – significant positive impact following the works conducted by RMGC so far and the measures included in the Cultural heritage management plan. • People’s health – significant positive impact following the measures for creating modern living conditions, for improving the medical support and for ensuring that the environment quality is compliant with the legal provisions. • Road infrastructure / Transportation – significant positive impact related to road infrastructure following its upgrade and increase of the traffic safety. Neutral impact regarding the transport related to the mining project’s activities. • Landscape – insignificant negative impact, after rehabilitation and restoration of the area; the only significant negative impact, at local level, is the definitive change of the landscape. • Soil/Use of land – neutral impact, due to the impact prevention/mitigation measures. • Material values – positive impact, following the use of local resources and purchase of the properties based on mutual advantageous transactions. Significant positive impact, following the high recovery efficiency of the precious metal from the ore. • Climate – insignificant negative impact; we add here that the gas emission sources which have a greenhouse effect will disappear after the closure of the operations. • Transboundary – the only significant transboundary impact could be the pollution of surface waters following the failure of the tailings dam. The assessment of the transboundary residual impact on the surface waters related to the failure of the tailings dam from Corna Valley may be ranked as neutral.

For detail information please see Chapters 6 and 7 of the Environment Report for the Amendment of the Urbanism Plan for Roşia Montană Industrial Zone.

The activities of closure and ecological rehabilitation in Roşia Montană include the following:

• Topsoil cover of the waste dumps, as long as they are not used for backfilling the pits; • Backfilling of the pits, excepting Cetate pit which will be flooded and converted into a lake; • Topsoil cover of the TMF and of the tailings dam; • Decommissioning of the production plants not longer in use and the ecological reconstruction of the decommissioned areas; • Water treatment though semi-passive systems (including traditional treatment systems as back up) until the level of the indicators for all effluents reach the standard and don’t require continuation of the treatment process; • Maintenance of the vegetation, prevention of the erosion and monitoring of the entire site, until RMGC demonstrates that all rehabilitation objectives were made in a sustainable manner.

In accordance with the Mining Law from Romania and the EU Directive regarding the mining waste, there will be a for the environmental financial guarantee set up (EFG) before creating any debt. EFG is established by the Mining Law (no. 85/2003) and by the Guidelines for applying the Mining Law issued by the National Agency for Mineral Resources (no. 1208/2003).

In accordance with the national legislation, there are two separate and different EFG.

The first one, which is updated every year, focuses on covering the costs forecasted for the ecological rehabilitation related to the operation of the mining objective during the respective year, as per art. 133 of Governmental Decision no. 1208/2003..

The second guarantee, which is also update every year, establishes the costs forecasted for an eventual closure of the Roşia Montană mine. The value of the EFG aimed for covering the costs related to final environment rehabilitation is calculated as annual quota from the value of the environment rehabilitation works forecasted within the monitoring program, post-closure. This program is part of the Technical Program for the mine closure, a document which has to be approved by the National Agency for Mineral Resources ("ANRM”).

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All EFGs will comply with the detail rules issued by the World Bank and the International Council for Mining and Metals.

There are, also, two Directives of the EU which relate to the EFG: The Directive for mining waste 2006/21/CE („DSM”) and Directive no. 2004/35/CE for environment responsibility („DRM”).

The Scope of the Mining Waste Directive is to ensure the coverage for 1) all obligations resulting from the permit issued for the removal of the waste generated by mining works and 2) all costs related to the rehabilitation of the land affected by the waste storage. The Directive for the environment responsibility sets up the remediation activities and the measures which must be implemented by the environment authorities in case of an ecological accident due to mining operators, for the purpose of ensuring that the operators have available the appropriate financial resources for the ecological remediation works.

RMGC will comply with the legal provisions regarding the financial guarantees, which will be adopted in future, by the authorities, on the grounds of Artciel 33 of the Government Emergency Ordinance no. 2004/35/CE on the environment responsibility, the prevention and rehabilitation of the damage brought to the environment and Article 50 of the Government Decision no. 856/2008 implementing the Directive 2006/21/CE on the mine waste management and amending of the Directive 2004/35/CE.

The current closure costs for Roşia Montană are 35 million USD, calculated for the mine operation life of 16 years. The annual updates will be established by independent experts, in liaison with ANRM, in the quality of competent governmental authority in the field of mining operations. The updates ensure that, in the case of very unlikely early closure of the project, and at any time, EFG always reflects the costs needed for the ecological rehabilitation. (These annual updates will result in an estimate value which exceeds the current closure cost of 135 million USD, because the usual operation of the mine includes certain ecological rehabilitation works).

The annual updates include four viable elements:

• Changes brought to the project and which affect the objectives of ecological rehabilitation; • Changes of the legislation in Romania, including the implementation of the UE Directives; • New technologies which improve the methods and practices for ecological rehabilitation; • Changes of the price for certain key products and services needed for the ecological rehabilitation.

Once these updates are completed, the new estimate costs for closure works will be included in the financial statements of RMGC and will be publicly disclosed.

According to the law, several financial tools are available for ensuring that RMGC is capable to cover all the closure costs, so that the Romanian Authorities don’t have any financial responsibility concerning the environment rehabilitation due to Roşia Montană Project.

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

Currently RMGC has approx. 200 employees, out of which over 90% are living in Roşia Montană, Abrud, Câmpeni and Bucium. Training programmes have been developed to support the members of the local communities living around Roşia Montană Project area to allow them to qualify for different jobs or skills, both during construction and operations stages. To date, over 5,000 individuals have joined the training courses and over 2,500 individuals have already graduated or are enrolled in the professional training courses, especially in the fields of construction, wood processing industry or services industry: security, sales, tourism, social assistance, transport, utilities, environmental monitoring, etc.

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Unfortunately, due to the challenges faced by this project during the last year, the company was forced to stop several programmes (among which this training programme) and even to lay off part of its labour force as to reduce the costs and at the same time to maintain the necessary capital for the further development of the project. The company shall restart these training courses when the situation allows it.

If the necessary skills are not available at local level, employment offers shall be made for the locals on a 100Km radius around Roşia Montană Project (RMP), priority being given to the citizens of Alba County. Based on our preliminary assessment, we expect that most of the jobs available during construction and operation stages to be filled by labour force from the local community.

Beside immediate direct and indirect benefits, RMP presence as a major investment shall improve the economic climate in the area, which, on its turn, shall encourage and promote development of economic activities not related to mining industry. It is expected that this qualitative growth of the investment and economic climate would lead to business opportunities that would develop in parallel with RMP, even though the scope of mining development is greatly exceeded. The diversification of economic development is a major benefit of investments generated for the development of RMP.

To meet its commitments, RMGC is aware of the fact that it has to cooperate with the community, authorities and civil society in issues directly related to area development.

This approach allows the community to hold, direct and control all relevant development issues in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) recognizes that in order to meet its commitments on sustainable development process, it needs to cover the three major elements of the sustainable development process: social, economical and environmental. These elements are presented below as 5 interdependent domains, which are the key for the sustainable development.

The five key domains of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force; • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under

Page of answer 4 of 8 Pagina 194 din 206 advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

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Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

The most efficient and economic process for extracting the gold and silver from the ores is the type which will be used in Roşia Montană; this is based on full cyanide leaching of the ore mass. There are numerous examples in the world, of similar ores, which require the need of using cyanide technology for effectively extracting the precious metals. The implementation of the cyanide technology for gold and silver recovery from Roşia Montană ore is sustained by a detail testing program conducted by AMMTEC Limited and AMDEL Limited. The tests were scheduled and supervised by GRD MINPROC Limited, and the findings of the testing program were checked and reconfirmed by S.N.C. LAVALIN şi AUSENCO. The design of the cyanide leaching technology for the ore from Roşia Montană took into consideration the best practices used at European level and everywhere else in the world. The metal recovery technology using cyanide leaching through CIL is BAT (The Best available techniques (as per Chapter 3.1.6.2.2 and Chapter 5.2 of the BREF Guidelines [1] EU Document on BAT for Management [...] in Mining Activities, March 2004).

The cyanide will be delivered in solid state, within special designed and built ISO containers. The cyanide will be dissolved straight into the transportation containers, in an alkaline solution, resulted from and re-circulated within a mixing tank. The mixing tank is designed so it can contain the full capacity of a transportation container. After dissolving the entire quantity of cyanide from a container, it will be then transferred from the mixing tank, into a big capacity storage tank.

The grinded ore, resulted from the overflow of the ball mill hydro-cyclones, is transferred to the container of the pump which feeds the CIL circuit, where it is mixed with cyanide and lime, needed to adjust the value of pH. The active carbon is added to the CIL tanks for facilitating the leaching process and the absorption of the dissolved metals.

The slurry goes through a leaching process consisting of two parallel alignments of 7 CIL tanks each, equipped with agitators. The size of a CIL tank is D = 18 m x H = 20 m. The size is designed so that enough time of contact between the cyanide solution, grinded ore mass and active carbon is ensured. Provided the needs, sodium cyanide solution is added to CIL tanks no. 2 and 4 of each alignment, so that the necessary cyanide concentration is sustained within the circuit. The slurry is circulated within the hydro-gravitational cyanide leaching circuit, and the carbon advances continuously in counter-flow of the slurry, pushed by vertical pumps. The time from one tank to another is adjusted for ensuring a gold and silver load in the carbon of 7000 to 8000 g/t.

The mixing of the slurry with flocculants which support the settlement of solids, takes place in the thickener. The thickener (tank) ensures the growth of the solid content in the sediment, as well as the relatively clarified water with cyanide content. This water, discharged from the thickener, will be directed towards the grinding circuit, for reusing and recovering the cyanide.

The thickened slurry is pumped towards the cyanide detoxification circuit, which works on SO2/air

Page of answer 6 of 8 Pagina 196 din 206 process, where the concentration of weak acid dissociable cyanide (WAD) from the slurry will decrease under the standard of Romania legislation and EU Directive. The management of the processing tailings and the detoxification technology are BAT techniques, according to the Chapter 3.1.6.3, 3.1.6.3.2 and 4.3.11.8 (EU Guiding Document on BAT for Management ... in Mining Activities, March 2004). The detoxified slurry will be pumped to the tailings dam.

The cyanide used during the processing phase will be handled/stored in accordance with the EU standards and the provisions of the International Cyanide Management Code (ICMC- www.cyanidecode.org), and safely kept on the processing plant site, to avoid any potential leakage. The cyanide and its compounds will undergo the INCO detoxification (DETOX) which is considered The Best Available Technique (BAT- best available technique), according to BREF document, and the processing tailings will be pumped to the tailings management facility in accordance with the Governmental Decision no. 856/2008 regarding the management of the waste generated by extractive industries, which implements the provisions of the EU Directive 2006/21/CE on the management of waste generated from extractive industries.

Most part of the cyanide will be recovered in the processing plant.

The only source of process residual water of the Project is the detoxified tailings. The concentration of residual cyanide contained by treated slurry will have to comply with the EU Directive 2006/21/CE regarding the mining waste – maximum value of 10 ppm CNWAD (weak acid dissociable).

The model run for the predictable concentrations within the tailings dam proved that the tailings slurry is expected to contain 2 – 7 ppm WAD cyanide. Through further degradation, the concentrations will lower up to values below the standards set for surface waters (0.1 mg/l) in 1-3 years from closure. A side effect of this treatment is also the removal of many metals which could appear in the flow of industrial used waters.

After settling, the water is re-circulated back into the process; several processes take place in the dam during stationary time: natural cyanide degradation / decay, hydrolyze, volatilization, photo- oxidation, bio-oxidation, complexing / decomplexing, sediment adsorption, dilution induced by rainfalls, etc.

The data obtained from various mines during operations, show variable efficiencies for cyanide reduction (from 23-38% to 57-76% for total cyanides, and 21-42% to 71-80% for WAD cyanide) related to the season (temperatures).

There was considered an average of approx. 50% of CNt in the tailings dam during operations. After the closure of operations, as per the model run for the degradation/decay process, it is possible a reduction of the concentration even up to 0.1 mg CNt/l in the first three years.

The biggest part (90%) of the decayed cyanide quantity (the average of 50%) is done through hydrolyze/volatilization as hydrogen cyanide. The mathematic modeling of the hydrogen cyanide concentration from the tailings dam lead to a maximum hourly concentration of 382 µg/m3 in comparison to 5000 µg/m3, standard concentration for emissions set through ORDER of the Ministry of Waters, Forests and Environment Protection no. 462/1993 for the approval of Technical Conditions regarding the atmosphere protection and the Methodological Norms regarding the measuring of atmosphere pollutants generated from stationary sources, with its further completions and amendments.

Cyanide has been used to process ores at Baia de Arieş, but with no detoxification of tailings before their discharge in the Tailings Management Facility (TMF). Rarely, a chlorination of water discharged from the TMF has been performed when cyanide concentrations exceeded the standard limits. In 2005 Baia de Arieş mining operation was closed and the employees were laid off without implementing a Closure and Rehabilitation Plan. However, there haven’t been notified any aspects that would not be compliant with the law or which might have generated a significant impact on the ecosystem of Arieş River or on the downstream watershed. The impact on Arieş River watershed consists in an elevated load of heavy metals in the water, due to previous mining activities, but according to the official reports of National Administration of Romanian

Page of answer 7 of 8 Pagina 197 din 206 Waters – Mureş Water Directorate cyanide is not indicated as a pollutant.

Cyanide will be used at Roşia Montană only in an enclosed system, within the plant site, any accidental discharges will be collected and reused in the process, and there is no possibility to have elevated concentrations of cyanide outside of this site, in used waters or in tailings that are discharged in the TMF. The tailings will be detoxified before leaving the plant site until they reach concentrations as low as 10ppm; this proposed technology of detoxification is considered as being BAT (Best Available Technique), which was selected after conducting detoxification tests that have considered the conditions of the ore deposit and site; also, full compliance with Romanian legislation with EU Mine Waste Directive (2006/21/EC), as well as with international guidelines and codes (Cyanide Management Code) has been aimed.

Cyanide concentrations will be monitored online, during the development of each process stage, and after tailings are discharged in the TMF, a monitoring system through boreholes that will be located downstream of the TMF was conceived in order to emphasize full compliance with the law. When the sensors of the monitoring system have detected that the maximum admitted concentration has been exceeded, the processing system will be stopped until the problem is solved.

The mining methods proposed by Roşia Montană Gold Corporation are classical methods for ore extraction in open pits, which consist in blasting, loading and transport to the primary crusher. All these operations will be carried out with the strict observance of the occupational safety norms. An alternative to this method is the underground mining, which is much more dangerous than the open pit mining, considering that there at any time, there’s the risk of stopes to collapse and capture miners and equipments in underground, or the risk of damages to the ventilation system with baneful consequences over the miners’ security. Other consequence of the underground mining is the possible falling of some surface areas due to the mining voids.

Also, the underground mining is carried out with high costs and with an irrational mining of the ore resources which remain blocked in the protection pillars necessary to support the working faces.

As a conclusion, the mining method proposed by RMGC, respectively in open pits, is the safest mining method used all over the world.

Both the gold and silver recovery technology by cyanidation through CIL procedure and the utilization of the detoxification circuit of the cyanide based on SO2 / air method are considered BAT being used all over the world. The cyanide content in the tailings management facility will be below the minimum content stipulated by the existing European regulations.

In Chapter 5 – Alternatives of the EIA report, the alternative solutions regarding the mining and processing of the Roşia Montană ore have been presented in detail. The proposed technologies have been selected (with explications) as a result of a multi-criteria analysis. The analyzed criteria are as follows: ore deposit conditions, risks associated with each technology, operation costs, etc.

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Item no. 52

Stakeholder Vesa Tudor name

Stakeholder Roşia Montană, Gura Minei, Nr. 66 address - It is an economic disaster 100%. The ecologic disaster is disputable but the economic one is Question/ certain. When will the project start? Comment S.C Roşia Montană Gold Corporation S.A (RMGC) agrees with the stakeholder regarding the need of a viable investment from economic stand point for the area, so that the problematic situation of the ecological heritage left behind by the old mining works is diminished. The current situation of the village includes a heavy water pollution, deserted land and non-rehabilitated waste dumps.

RMGC assumed the obligation of implementing and commencing a project which will ensure the necessary financing and professional expertise for a benefic environment rehabilitation, in accordance with the relevant legislation imposed by Romania and European Union.

Currently, SC Roşia Montană Gold Corporation SA (RMGC) is the biggest employer in Roşia Montană area, and the number of jobs will increase while the Project will be developed.

This area will benefit from the opportunities created through the development of this mining project which takes into consideration the sustainable development of the entire zone.

RMGC currently has about 200 employees, out of which 90% live in Roşia Montană, Abrud, Câmpeni and Bucium. RMGC developed training programs to support the local communities neighboring the area of Roşia Montană Project (RMP) in qualifying for various jobs and skills, for the construction phase, as well as for the operations phase.

Over 5000 people signed up for training classes so far, and over 2500 people already graduated Answer these courses or are involved in professional skills development process, mainly in the field of constructions, wood processing or services, such as: security, sales, tourism, social assistance, transport, utilities, environment monitoring, etc.

Unfortunately, due to the obstacles this Project encountered, the company had to stop some programs (including this training program) and even to undergo retrenchments in order to reduce the costs and, in the same time, to maintain the capital needed to continue the development of the Project. The Company will resume these training courses as soon as the situation will allow it.

If the necessary skills are not available on local market, the employment will extend to an area of up to 100km radius the RMP, with first choice being given to the people from Alba county. Our preliminary assessment makes us believe that the majority of jobs for the construction and operations phase will be sourced from the local labour market.

In addition to the direct and indirect benefits, Roşia Montană Project, being the major investment, will improve the economic environment of the area which, at its turn, will encourage and promote the development of economic activities which are not related to mining. It is expected that this qualitative increase of investment and economic environment to develop along with the RMP, even though the area of activities directly related to mining operation is well exceeded. The diversification of economic development is an important benefit of the investments generated to build RMP.

Page of answer 1 of 5 Pagina 199 din 206 In order to fulfill its commitments, RMGC acknowledges that it must work with the community, authorities and civil society in what regards the issues directly related to the development of the area.

This approach enables the community to hold, orientate and control all issues of relevant development, in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) agrees that, in order to fulfill its commitments related to the sustainable development process, must cover those three pillars of sustainable development process: social, economic and environment. These elements are presented below as 5 interdependent fields, which form the core of sustainable development.

Five key components of the sustainable development

Financial capital Includes: the impact on economic development, fiscal administration, taxes and fees, given by: - An average of 2337 jobs during the construction phase, for 2 years; most jobs will be recruited from the local labour market; - 881 jobs during the operations phase, for 16 years; most jobs will be recruited from the local labour market; - 270 jobs during closure phase, for 5-7 years; most jobs will be recruited from the local labour market; - approximately 6560 jobs indirect generated during the construction phase at local and regional level; - approximately 5246 jobs indirect generated during the operations phase at local and regional level; - approximately 1811 jobs indirect generated during the closure phase at local and regional level; - USD 1.75 billion, representing: the share of the Government from the profit, taxes on profit, royalties and other taxes and fees imposed by the local, regional and national authorities from Romania; - USD 2.42 billion, representing the value of the goods and services purchased from Romania.

In order to vary and develop the economic opportunities granted by RMP, RMGC also works with the local stakeholders for starting its own business activities: - set up a micro-credit institution in the area, which enables easy and reasonable access to financing; - set up a business centre for providing support, training (entrepreneurial, business plans, administrative and fiscal management etc), legal, financial and administrative advice, in order to promote the development of the business environment at local and regional level. This is necessary for the supply of goods and services required by RMP, as well as for encouraging the business spirit of the locals, as part of the preparation process for the needs of sustainable development after the completion of RMP.

Material capital Infrastructure – including the buildings, the supply with power, water and waste management: - the increase of income for governmental agencies, up to USD 1.75 billion for over 20 years (phase of construction-production-closure) will represent additional funds which the authorities may allot for improving the infrastructure from community; - Also, RMGC will build the new town, Piatra Alba and Recea residential area in Alba Iulia for the resettlement of the population. Piatra Albă will include a new civic centre, trade and residential areas. Upon the completion of RMP, these will be transferred over to the local authorities. The Action Plan for Resettlement and Relocation (RRAP) contains all the details regarding these initiatives.

Human capital Includes: health and education: - build a medical unit and a private clinic at Piatra Albă, accessible for the entire community, through the health insurances;

Page of answer 2 of 5 Pagina 200 din 206 - upgrade one wing of the hospital from Abrud, accessible for the entire community through the national system of health insurances; - improve the emergency medical system in the region; - build a new school, a civic and residential centre at Piatra Albă; - campaigns for health awareness (in partnership with local authorities and NGOs) in relation to: reproduction health, nutrition and life style, etc. - partnership with education organizations and NGOs regarding the improvement of the education units from the region and access to these; i.e.: the NGOs and the local authorities worked together for setting up an educational partnership with the headquarters at CERT (the Centre of Resources for Youth, Apusei - www.certapuseni.ro).

Social capital Includes: professional training, strengthen the relations within the community, the social networks and the capacity of the institutions to support them and preserve the cultural heritage: - efforts for the development and promotion of the cultural heritage from Roşia Montană, both for locals and for tourism purposes – RMGC is partner in the Partnership for Roşia Montană cultural heritage ([email protected]); - opportunities for the education of the adults and improvement of their skills, through training programs, funds and scholarships, which have the role to increase the employment chances, both direct, with RMGC, as well as indirect – RMGC is partner in the Roşia Montană Program for skills and trades training; - support programs for vulnerable people and groups, and strengthening of the social network, especially in Roşia Montană – RMGC is partner of Roşia Montană Good Neighbor Program which is coordinated by ProRosia local ([email protected]); - RMGC supports the partnership coordinated by NGOs which work with the youth from the area, for improving and increasing the potential of the community (www.certapuseni.ro).

Natural capital Includes: landscape, biodiversity, water quality, ecosystems: - the measures must be included in the management plans of RMP and the Standard Operational Procedures (SOP) for the prevention and management of emergency situations; the implementation of these measures will lead to diminishing of the impact on the environment and improvement of the environment conditions, as provided in the EIA; - the improvement of the environment conditions will increase the life quality in Roşia Montană; - training and support for integrating the aspects related to the quality of environment in the business plans; - awareness campaigns regarding the protection measures for the environment within business activities; - set certain environment standards once the loans though micro-financing are granted, including the monitoring of the environment protection measures; - Business Code of Conduct which impose on the suppliers of RMP the compliance with RMGC standards regarding the environment protection measures.

SC Roşia Montană Gold Corporation SA submitted the application for the issuance of the environment permit for Roşia Montană Project, to Alba Environment Protection Agency, on December the 14th, 2004.

The documentation submitted by the Titleholder consisted of: the technical sheet, the Annex to the Urbanism Certificate, and the Presentation Memorandum of the Project, which was posted on the web site of the Ministry commencing with December the 20th, 2004.

Given the fact that the Project is subject to the provisions of the Espoo Convention regarding the environment impact assessment within transboundary context, the Ministry of Environment asked the Ministry of Foreign Affairs, through Letter no. 4596 of December 21st, 2004, to send notifications to the likely impacted countries: Hungary, Serbia and Montenegro, Bulgaria, Moldova, Ukraine, Slovakia.

Page of answer 3 of 5 Pagina 201 din 206 Hungary confirmed its participation to the impact assessment procedure of Roşia Montană Project within transboundary context. Hungary has also sent a preliminary proposal regarding the requirements for the content of the EIA Report for Roşia Montană Project.

Bulgaria replied to the notification, saying that it won’t participate to the impact assessment procedure for Roşia Montană Project within transboundary context.

Moldova Republic replied to the notification saying that it won’t participate to the impact assessment procedure for Roşia Montană Project within transboundary context, but it asked for the EIA Report, as soon as it will be completed.

Serbia and Montenegro, Ukraine and Slovakia didn’t submit a formal response.

In April, the 14th 2005, the RMP site was visited by representatives of the Ministry of Environment and Sustainable Development, Sibiu Regional Environment Protection Agency, Alba Environment Protection Agency and the Titleholder. The site visit was concluded with a report and followed by filling out the Check List according to the legislation in force.

In May, the 10th 2005, there was the Technical Analysis Committee (TAC) at central level for ranking and defining the assessment domain. The TAC (formed by representatives of the Romanian Academy, Ministry of Economy and Commerce, Ministry of Internal Affairs, Ministry of Health, Ministry of Transportation and Infrastructure, Ministry of European Integration, Ministry of Cultures and Cults, National Agency for Mineral Resources, National Administration of Romanian Waters) established the issues which need to be addressed within the EIA Report. In addition to the issues identified by the Romanian Institutions represented within this Committee, RMGC addressed the issues requested by the Environment Authorities from Hungary.

The EIA Report was issued by certified entities based on the Compliance list for defining the assessment domain, the additional questions addressed by the TAC institutions and the proposals of the likely impacted countries, in accordance with the legislation in force.

• The EIA Report was subject to public debates during July the 24th 2006, to August the th 25 , 2006, in 14 different towns from Romania (Roşia Montană, Abrud, Câmpeni, Alba Iulia, Zlatna, Brad, Cluj-Napoca, Turda, Bistra, Baia de Aries, Lupsa, Bucuresti, Deva, Arad); • Two public debates were held in Hungary, at Szeged and Budapest, as a result of the participation of Hungary in the EIA procedure for RMP within transboundary context; • The Ministry of Environment reviewed the results of the public debates, assessed the proposals / comments issued in reason by the stakeholders and will ask the Titleholder to complete the EIA Report with an Annex comprising solutions to the issues raised.

In January the 31st, 2007, the Ministry of Environment transmitted to the Project’s Titleholder, SC Roşia Montană Gold Corporation SA, the Form comprising the observations and the comments received from the stakeholders during the public debate phase.

In May the 4th, 2007, The Project’s titleholder submitted its response to the Ministry of Environment in relation to the observations and comments addressed by the stakeholders. This response represents the Annex to the EIA Report;

The Ministry of Environment forwarded the Annex, in electronic format – CD – to the stakeholders which addressed the observations and comments.

The Technical Analysis Committee convened at central level in June the 26th 2007, July the 10th 2007, July the 19th 2007 and August the 9th 2007. 4 Chapters of the EIA Report were reviewed, namely:

• Chapter 1 – General provisions • Chapter 2 – Technological processes

Page of answer 4 of 5 Pagina 202 din 206 • Chapter 3 - Waste • Chapter 4 – Potential environment impact, including the transboundary impact, and related mitigation measures, without the subchapter referring to the cultural and ethnical baseline conditions and cultural heritage (8 subchapters).

In September the 12th 2007, the Ministry of Environment suspended the EIA review procedure due to the cancellation of the Urbanism Certificate no. 105 / 2007.

RMGC challenged the decision of having the environment integrated permitting procedure suspended, suing the Ministry of Environment and its representatives through the Court Introductory Application which forms the Scope of the file no. 8037/2/2007 pending with the Appeal Court of Bucharest – department of Administrative and Fiscal Litigation, ongoing. S.C. Roşia Montană Gold Corporation S.A. follows all the necessary requirements to have this procedure recommenced, awaiting for the continuation of the review on the EIA Report by the TAC which has to be convened by the Ministry of Environment, according to the law.

Consequently, the gold ore mining is mainly dependent on the status of the Project’s permitting and especially on obtaining the environmental permit.

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Item no. 53

Stakeholder Liliana Mursă name

Stakeholder Abrud, Str. Mărăşeşti, Nr. 63 address She has been a teacher for 23 years at Gura Rosiei. In the fall of 2006 things have changed, RMGC organized a Summer School for children. She supports the project. There is a partnership Question/ for education. 25 workshops for the education of children are being organized this year. Through Comment this partnership free training courses have been provided for teachers. We must offer a future to the children in the area because it is not at the EU standards. She thinks that the education of children is a benefit for the future generation. The company is committed to promote the long term development opportunities, as part of the sustainable development plan.

More important than a policy of donations, we would like to institutionalize the capacity of the community, so that ways for simulating projects are identified, either cultural, educational or sport and entertainment related.

We will continue to support the schools, as we have done so far through topic related programs; we will get involved in the education field, as we already have several initiatives in this regard. Some are already very advanced. We remind here about the environment partnership, about the Centre of Resources for Youth, Apuseni.

In addition to the direct and indirect benefits, Roşia Montană Project, being the major investment, will improve the economic environment of the area which, at its turn, will encourage and promote the development of economic activities which are not related to mining. It is expected that this qualitative increase of investment and economic environment to develop along with the RMP, even though the area of activities directly related to mining operation is well exceeded. The diversification of economic development is an important benefit of the investments generated to build RMP.

In order to fulfill its commitments, RMGC acknowledges that it must work with the community, Answer authorities and civil society in what regards the issues directly related to the development of the area.

This approach enables the community to hold, orientate and control all issues of relevant development, in an integrated manner and through the participation of all stakeholders.

Roşia Montană Gold Corporation (RMGC) agrees that, in order to fulfill its commitments related to the sustainable development process, must cover those three pillars of sustainable development process: social, economic and environment. These elements are presented below as 5 interdependent fields, which form the core of sustainable development.

Five key components of the sustainable development

Financial Capital

Includes: impact on the economic development, and on fiscal, taxes, and duties administration, provided by:

• An average number of 2337 jobs during construction for a period of two years, most of them being filled by local labour force; • 881 jobs during operational stage for a period of 16 years, most of them being filled by local labour force;

Page of answer 1 of 3 Pagina 204 din 206 • 270 jobs during closure stage for a period of 5-7 years, most of them being filled by local labour force; • Approx. 6560 indirect jobs during construction stage generated at local and regional levels; • Approx. 5246 indirect jobs during operational stage generated at local and regional levels; • Approx. 1811 indirect jobs during closure stage generated at local and regional levels; • US$1.75 billion, representing the share of Romanian Government fro the profits, profit taxes, royalties and other duties and taxes due toward local, regional and national authorities of Romania; • US$2.42 billion, representing the value of assets and services provided from Romania

RMGC also cooperates with stakeholders for the initiation of their own businesses as to diversify and develop the economic opportunities provided by RMP:

• The establishment in the area of a micro-bank that allows access to finance under advantageous conditions; • Establishment of a business centre and business incubators to offer support, training (entrepreneurial, business plans, administrative and fiscal management, etc.), legal, financial and administrative consultancy, necessary to promote the development of local and regional business environment. This is necessary both for provision of assets and services to RMP and for encouraging the entrepreneurial capacity of locals as to be prepared for the sustainable development needs after completion of RMP.

Material Capital

Infrastructure – including buildings, power supply, transportation, water supply and waste management:

• Income for governmental agencies, totalling US$1.75 billion for over 20 years period (construction-production-closure activities), which represents supplementary funds that may be allocated by authorities for the improvement of community infrastructure; • Moreover, RMGC shall build a new locality at Piatra Albă and La Recea Neighbourhood in Alba Iulia for the resettlement of population. Piatra Albă shall include a new civic centre, commercial and residential areas. Upon completion of RMP, these shall be transferred to local authorities. The Relocation and Resettlement Action Plan (RRAP) contains all details related to these initiatives.

Human Capital

Includes: health and education:

• Construction of a medical facility and of a private clinic at Piatra Albă, available to the entire community through health insurance systems; • Modernization of a wing of Abrud Hospital, available for the entire community through the National Health Insurance System; • Improvement of the medical emergency system in the region; • Construction of a new school and of a new civic and residential centre in Piatra Albă; • Health awareness campaigns (in partnership with local authorities and NGOs) on: reproduction health, nutrition and lifestyle, etc. • Partnerships with educational organizations and NGOs on improvement of educational facilities in the region, together with the access to these facilities; for instance, local NGOs and authorities cooperated for the establishment of an educational partnership based at CERT Association headquarters (Apuseni Youth Resource Centre - www.certapuseni.ro).

Social Capital

Includes: professional training, strengthening the relations within the community, the social networks and the capacity of institutions to support and preserve the cultural heritage:

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• Efforts for the development and promotion of cultural heritage in Roşia Montană both for locals and for tourism purposes – RMGC is a partner in the Roşia Montană Cultural Heritage Partnership ([email protected]); • Education opportunities for adults and improvement of their skills through training programmes, educational funds and scholarships, in order to increase the chances to secure a job both directly with RMGC and indirectly – RMGC is a partner in the Roşia Montană Professional and Vocational Training Programme; • Programmes developed for assisting vulnerable individuals and groups and for consolidating social network, especially in Roşia Montană – RMGC is a partner in the Roşia Montană Good Neighbour Programme managed by a local NGO, ProRosia ([email protected]); • RMGC supports the partnership managed by NGOs working with youths in the area for the improvement and upgrade of the community potential (www.certapuseni.ro).

Natural Capital

Includes: landscape, biodiversity, water quality, ecosystems:

• Measures included in the management plan of RMP and in the Standard Operating Procedures (SOP) for the prevention of accidents and emergencies management shall result in the mitigation of environmental impact and improvement of environmental conditions, as stipulated under EIA; • Improvement of environmental conditions shall increase life quality at Roşia Montană; • Training and support provided for the integration of environment quality issues into the business plans; • Awareness campaigns on implementing environmental protection measures within economic developments; • Imposing environmental standards when granting loans through micro-financing, to include monitoring of environmental protection measures; • Business Code of Conduct through which all RMP suppliers are required to observe RMGC standards on environmental protection.

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